As more viewers turn to online video for entertainment, DigitalTVEurope.net reports that Netflix is poised to hit 46 million streaming customers in the United States by 2021, an increase from previous estimates of 43 million.
The report by Pacific Crest also predicts that Netflix will have 36 million subscribers by 2015, up from 27.2 million subscribers at the end of 2012.
Andy Hargreaves of Pacific Crest told CNBC that Netflix’s success comes from understanding its audience through data and then buying and creating content that people want.
He said: “Strategically, we expect Netflix to use its information advantage to invest in high-quality original content where it will have the highest impact on users’ perception of the service, while exploiting opportunities in third-party and niche content that can broaden the total addressable market. In this way, we believe Netflix will be able to improve the perceived quality of its offering as well as expand its consumer reach, which should allow it draw a much wider audience than any current premium video service.”
In the face of increased competition from Hulu Plus, YouTube and Amazon Video, Netflix has diversified its offerings beyond movies and TV series by creating original programming like “House of Cards” and the upcoming season of “Arrested Development.”