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Netflix in Germany: will it arrive too late for the party?

As the industry waits for the launch of Netflix in Germany, veed analytics have revealed their scepticism concerning Netflix’s prospects for success. “Our content analyses show that Amazon Prime offers the largest catalogue of current movies and TV shows in Germany. Assuming Netflix Germany launches a similar TV show offering to Netflix US, they would only rank fourth in Germany. This raises the question of whether Netflix enters the German market too late,” explains Bernd Riefler, CMO at veed analytics.

Within the space of a few months, Amazon Prime Instant Video has reached the top of the German SVoD (Subscription Video on Demand) services. A recent veed analytics SVoD analysis shows that Amazon offers 14% of the ‘Current 400 Movies’, represented by the 100 most successful movies between 2010 and 2013; significantly more than any other service. Of the ‘Current 100 TV Shows’ measured by DVD sales numbers, Amazon also tops competitors Maxdome, Watchever and snap.

Netflix content offering in Germany is still unknown but their positioning in the US at least gives a hint of a potential content offering. Besides the German market, veed analytics is also continuously analysing the US video services as regards content, pricing and features. It turns out that Netflix US is well positioned with regard to the US ‘Current 400 Movies’ but lacks current TV shows.

Assuming a similar positioning in Germany, Netflix would only rank fourth in the TV shows category compared to Amazon, Maxdome, Watchever and snap. “Amazon already locked the market with a very low price point and offers an attractive content catalogue. Netflix has a superior product in terms of technology and user-friendliness, but ultimately the user decides based on price and content,” concludes Thies Haase, VP Product at veed analytics.

 

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