This report looks into the economics of digital delivery and Netflix transition to hybrid physical/digital business. Generating little revenue in its own right, Watch Instantly is a cost centre for Netflix, due to content licensing and delivery costs. The service is acting as a very effective land-grab for Netflix in the digital space, demonstrating the company's impressive agility and maintaining relevancy of the Netflix brand to a rapidly evolving home entertainment consumer.

Hardware compatible with Watch Instantly

Watch Instantly streams (m)

Netflix churn (%)

Watch Instantly delivery costs ($m)

Netflix distribution costs ($bn)

Netflix quartely consumption

Netflix subscribers (m)

Authorised stock buy back programmes

Movie Windows

published: 02-Oct-09

pages: 14 - tables & charts: 9