Morgan Stanley survey reveals Netflix is better than HBO.
According to a recent poll, most Americans give precedence to Netflix over HBO. It is said to be the best original content provider when compared with premium TV services and Internet video providers. Morgan Stanley recently conducted its sixth annual survey of the video streaming fraternity, which indicated that Netflix is the uncrowned king where HBO has lost its prior position in the category of best original programming.
It is said to be the first time in the history of the aforementioned survey that Netflix has surfaced on the top amongst premium and non-cable services. The survey caters to the non-cable and premium networks that churn out original content such as Showtime and HBO. However, it does not cater to licensed programs or conventional television network. This survey was done in the United States with 2501 adults.
According to the result of the survey, 29% of the participants believed that Netflix is doing best in the original content genre. The results in contrast to last year have increased by 6% since in 2015, 23% participants had the same opinion.
The popularity of HBO has gone down where last year, 31% of the masses voted for it but now only 18% consider it the best in original programming. Other companies in the business are Hulu, Amazon and Showtime who lack behind these two.
Analysts from Morgan Stanley who were under the able guidance of Benjamin Swinburne said in the survey report, “This comes as we estimate that in 2016 Netflix will spend more on (original programming) than HBO for the first time.” It is relatively easy for the analysts to gauge why HBO failed to keep pace in the industry.
Netflix has come up with some amazing series in the past year in the form of Jessica Jones, Daredevil and Narcos. On the other hand, HBO is merely dependent on Game of Thrones since the past couple of years.
As per the estimates by analysts, Netflix is going to spend a hefty amount of $2.5 billion on its original content whereas HBO has plans of investing $1.8 billion in the same domain. The third spot is banged by Showtime with a $700 million amount. According to Ted Sarandos, the Chief Content Officer, the company has plans of coming up with 600 hours of original content this year. He stated, "We’re going to spend in 2016 about $5 billion dollars on content on a P&L basis, which means about $6 billion in cash.” The figure is inclusive of both original programming and content acquisitions.
It is quite evident that Netflix is on top of its game now. However, HBO needs to push itself to improve its content largely. On the other hand, the former needs to remain consistent in terms of coming up with amazing series and content so that it can attract new subscribers and retain old ones irrespective of the price hikes.