Netflix is the biggest video on demand service in the world. It has more paying subscribers than the largest US pay TV providers; 28 million globally of which 24 million are in the US. It has changed the way studios think about content distribution, and how consumers access content on connected devices.
But all is not rosy under the hood at Netflix… Their role in the value chain is to realise a margin between content supply/delivery and consumer purchase. But in doing so, Netflix is hostage to the commitment of their suppliers and there are now big questions over the long term cost dynamics that could undermine their retail model.