The fierce competition that comes for Netflix with the TV. from Apple

In Colombia, Netflix is ​​in 13% of homes, but Apple will put low-cost rates.

The television changed. The contents of platforms that allow citizens to choose what they want to see at the moment they can do it, is what makes furor and, until now, practically reigned Netflix, which, in Colombia, is present through subscriptions in 13 % of Colombian households. Now there is a fierce competition with the entry of Apple that, worldwide, talked about starting with rates of $ 5 to penetrate the market and up to 6 subscribers in the same account.

A report by OBS Business School points out that "140 million hours per day are viewed on the Netflix platform, representing 1,000 million hours per week and 52,000 million annually, data that show an exponential increase in recent years."

This implies that the platform is strong, but the coming competition is a great challenge.

Other data prepared by OBS Business School show that, only in the United States, Netflix already represents 10% of the time that Americans spend watching television, that is, only in that country an average of 100 million hours of content is consumed daily .

According to the report, Netflix's success is the commitment to its own content. "For example, under the‘ Netflix Original Series ’label, successful series such as House of Cards were launched, followed by the iconic Orange is the New Black in July of the same year."

From that perspective, the question is, will this be the course of television service competitors like Netflix or will they appear with surprises?

A whole pandora box what comes in the short term, because in Colombia, where there are already some services with Apple will enter fully before the end of this year.

Netflix debt, a challenge

In 2018, Netflix's debt went from 6,500 million to 10,400 million dollars, which represents a challenge in the midst of competition with the platforms that are entering.

This, because, according to the OBS Business School report, “is the price to pay to continue leading the streaming market: spending huge amounts on marketing and content production. In 2018 alone, it allocated around 2,000 and 8,000 million dollars respectively to these two items. ”

However, "the magnitude of the debt with respect to the percentage of total capital is still below 10%, which is quite far from the average of 30% to 40%, which is common in the sector companies. So the challenge is keep a controllable and below average liability, "the analysis adds.

The truth is that, in addition to HBO, Amazon Prime, Hulu, Sky, Rakuten or YouTube, the competition now includes two giants: Apple and Disney, which "begin to be a threat and claim their share in this market."