UPDATED 12:48 EDT / NOVEMBER 12 2010

Optimistic and Confusing Netflix Stats Define Industry Revolution

Netflix is reportedly predicted to be worth $2.2 billion by the end of 2010, as its handsomely growing streaming service will contribute to the reemerging of DVD and blue-ray rentals, currently on a steady decrease.

“The confusion here is caused by the fact that Netflix can’t separate streaming revenues from those derived from its envelope-based business. So while its subscription growth is being propelled by streaming, those numbers end up inflating projections for disc rentals—a category that seems to be deteriorating in every other way.”

With additional stats demonstrating the enormous long-term benefit of Netflix streaming samples and a no. 1 35% share of the entire disk rental spending in the U.S, Netflix has other hugely impressive figures in its portfolio.

In other news, Netflix will also be switching to Level 3 Communications for its CDN service, which means 2.9 additional Tbsp of bandwidth. The company already occupies a staggering 20% of all the internet traffic in North American between 8p.m. And 10p.m., but despite of its enormous customer-base, that doesn’t it doesn’t have to face its competition.

On the competitor side, Hulu is expanding towards everything from game consoles to TVs, and being the competitor whose revenue grew from $25M to $240M in just two years, Netflix certainly has its hands full.


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