Netflix’s customer base is likely more loyal to Apple than Google, because Google can easily replace Apple’s customer base. But the service’s “battlesome” customer base may not be for everyone. Apple is still very competitive among smartphone makers and Android users with iPhone, iPad and other iPhones, but for many users there is simply still a very strong desire for service, Munster notes. Google is more loyal than Apple in its own hardware and software initiatives. Apple’s mobile operating system, which can run iOS, Android and Windows phones, is a viable alternative too, says Munster.
“We’ve seen a lot of growth in our core segment, especially since Apple’s introduction of their mobile operating system last year. And with that I think you can say that in a little bit of time the service segment, especially given the strong hardware and software and the focus in the new generation, could start to make a lot more gains, and that’s part of the reason Apple had so much confidence in its mobile sales,” says Munster. “With the mobile market shifting for itself, Apple’s customers are increasingly trusting Apple to be their supplier and partner at what their customers are demanding,” says Munster. This is exactly where services like Netflix and Amazon come in - we’re in a business year that’s going to be changing the way we consume and we need to make sure that these services are successful and that we can compete with other competitors and take advantage of some of these different opportunities, as it were. This is the thing that a lot of the new consumers are going to be turning to if they come back to the service area. If you look at Netflix, there are some great innovations happening on its platform right now. The service of streaming music and videos really took off last year in terms of reaching new audiences, and it’s still doing that,” Munster says.
Netflix, which is now the second largest mobile media player, is clearly going to struggle to compete with its competition. The last two years have been pretty hard for the service, Munster says. Its core business remains the same that it is for the last several quarters. And while Netflix was the king of mobile video, it is still a big one, Munster says. Netflix has lost about 40% of its subscriber base over the last two quarters, a loss that, he notes, may not be as bad. They also need to diversify and take a different view on what their mobile video services are, he’s reminded. It’s that type of information with which they need to work.
“The other thing that I would like to see through that window is some changes in how apps and apps look. For example, they’re going to have bigger screen apps, different icons and more powerful desktop apps, and this is going to take longer, and they’re going to do it at an almost even faster pace than they are with the traditional mobile app.” | Facebook | Instagram
Discovery and innovation
Like Netflix, Netflix was on the chopping block during a major rollout at its launch at I/O in June. But now we’ve witnessed its business go from one of the most popular devices and most popular smartphone (iPhone) to that of the most popular TV (Xbox One, and possibly even Apple TV) and that’s a pretty remarkable accomplishment. It’s still the very company that is the strongest and if it isn’t able to deliver high quality, we’ve seen that Netflix’s audience is very strong and is just ahead of all of the competition. People want more of a Netflix experience, they want movies, they want social networking, and they want access to these services that they pay for. So how has the company fared in its home turf over the last few quarters? I really don’t know. They’re an incredibly profitable business, and so far the company hasn’t really come close to closing the revenue stream that we’ve seen by having to deliver even the biggest mobile apps. What I’m seeing now is one of different types of the service which we’re going to see continue to grow – not every single mobile service has been the same and so on.
“Even with the recent and dramatic shift to premium content with more and more premium bundles coming and more big video boxes on the way, it’s easy to see that we can be successful with subscription services like Netflix that still don’t bring in the revenue, but are having very good experience delivering those services,” says Munster. This is where most people really like to see the growth of Netflix. If people take their Netflix videos and then they put a Netflix TV at their door, it’s a great product and a lot of potential. better. than most other subscription services.