Video Streaming Has Plenty Of Headroom In Tablet Market

Netflix’s video streaming service already counts 36% of U.S. tablet owners as subscribers, according to a recent Morgan Stanley study

The bank’s AlphaWise survey of over 1,100 tablet owners also found that over 40% of respondents said they never had Netflix. That translates to over 27 million U.S. tablet owners who have never subscribed and could be targeted for further growth. Also, 19% of the tablet owners said they had cancelled their Netflix, and 3% said they switched to Amazon’s Prime Instant Video service.

Two years after the iPad’s launch, sizable opportunities still abound in the tablet market, even in a fairly exploited niche like video. Morgan Stanley’s survey also reveals how new entrants like Prime Instant Video, introduced in early 2011, can quickly begin to nip at the heels of market leaders. Subscription video exploiting more narrow subjects (performing arts or sports, for example) will likely also find room to grow. 

 

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