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Deadline has a story about how Netflix now has 71 percent of the global streaming-video-on-demand (SVOD) market … though it makes the point that newer services are beginning “to gain a bit of traction.”

The number comes from the Parrot Analytics 2018 Global Television Demand Report.

Here’s the money quote from the story:

“The 71% market share statistic for Netflix derives from Parrot’s proprietary ‘demand expressions’ metric. In 2018, Parrot also found, SVOD platforms have released 319 original series among them, more than the 147 released the prior year. Netflix dominated the originals category, premiering 139 shows and also accounting for nearly two-thirds of the estimated $19.5 billion spent on programming by Netflix, Amazon and Hulu.
KC's View:
I think this is a pretty good illustration of the importance of constant, relentless innovation. Netflix started as an online DVD rental company and moved into streaming, always with the belief that it had to compete for people’s time with the broadcast and cable networks, not with video rental stores. It was always pushing the envelope on that, even to the point of pretty much getting rid of those red-and-white envelopes in which it shipped DVDs. And then it invested billions in what essentially is private label - some of it superior to, and much of it at least as a good as, the entertainment equivalent of national brands.

I love the quote from Netflix founder/CEO Reed Hastings:

”As an entrepreneur you have to feel like you can jump out of an airplane because you're confident that you'll catch a bird flying by. It's an act of stupidity, and most entrepreneurs go splat because the bird doesn't come by, but a few times it does.”

It also seems to me that Netflix is a great example of a company understanding that there is no such thing as an unassailable business model. There are first mover advantages, to be sure, but being a first-mover is an ongoing challenge, not a one-and-done sort of thing.