- Netflix has 21 million subscribers to its Internet streaming service for $7.99 per month.
- Time Warner’s HBO has 28 million.
- Amazon.com’s streaming service is free for Amazon Prime customers.
- The Dish Network, a satellite operator, sells streaming movie subscriptions to its television subscribers.
- Verizon is launching a similar service in conjunction with Coinstar’s Redbox.
- And now Comcast has entered the market, offering Internet streaming video through its Xfinity Streampix, with content focused on older movies and television series reruns. Streampix will cost $4.99 per month for regular Comcast subscribers; it will be free to the more than 2 million subscribers who pay for a premium video service already.
The vast numbers of subscribers to each of these services exemplifies just how attractive the Internet streaming industry is. For now, Netflix still offers that best selection of shows and movies, but the other companies are quickly catching up. 
But the source of differentiation in the coming years is likely to be what sort of unique content each service can offer. On this measure, HBO appears to be in the lead, because it has developed its own critically acclaimed shows for years. Netflix is playing catch up in this space, developing its own series such as Lillyhammer, a Mafia drama with Kevin Spacey.
Discussion Questions:
- What is Internet streaming video?
- Why is Netflix making its own video content?
Source: Sam Schechner, “Comcast Takes Aim at Netflix,” Wall Street Journal, February 22, 2012.
Grewal Levy Marketing News 
Internet streaming video is the ability to watch videos, such as TV shows and movies, on the internet, via a web hosting site such as Netflix. This industry has grown significantly in the past few years, allowing companies like Netflix to grow. With most people owning a laptop or tablet device, internet streaming video has surged in popularity, as it allows people to watch videos other than in front of a TV. Many college students are opting out of getting a TV because they can simply watch whichever TV show they want online. Some of the video streaming providers, like HBO, have created their own content, which is a threat to Netflix because they have to pay more for the rights to the videos they stream than they would have to if they created the movies themselves. By making their own content, Netflix will be able to stay competitive in this field.
Internet streaming video is becoming a clear trend in the movie and entertainment sector. Internet streaming video is basically the ability to watch movies or reruns of TV shows online or with cable, but without having an actual physical DVD or channel airing the show. As internet streaming video is becoming more popular, more and more competitors are entering the market. As this is happening, it is becoming increasingly crucial that the competing companies do market research to better understand what customers want and what their competitors are doing so that they can adjust to increase their market share. As the article mentions, Netflix is beginning to produce their own video content because its competitor, HBO, is and it appears this is what customers are looking for. When there are so many competitors, each company is trying to find a way to differentiate itself from its competitors, which is what HBO and Netflix are trying to do by producing their own unique shows.
Internet streaming video is the video that can be viewed online through a provider. This includes any shows, movies, music videos, and more. Netflix is making its own video content to stay ahead of its competition because more and more providers are starting to allow for their customers to view online videos with broader selections. Netflix used to be the only one to stream videos online for a price, but now that other companies are joining this trend, the variety in which Netflix can provide is less attractive when compared to HBO or Amazon. It is fascinating to see how much this industry has grown over the past couple of years and how illegal downloading will affect the industry.