Netflix reaches more than 300M pay TV homes through partnerships

Netflix remote control image
Netflix has made big inroads in some countries, while it has yet to break through with operators in others. (Pixabay/Creative Commons)

Netflix now reaches more than 300 million global pay TV homes through its many set-top box integration partnerships with pay TV providers.

According to Ampere Analysis, to date, Netflix has struck more than 100 major partnership deals that give Netflix theoretical access to nearly half of all global pay TV subscribers outside of China. By the end of 2018, three quarters of pay TV subscribers in Western Europe had contracts with Netflix partner operators. Netflix also has substantial reach through pay TV households in North America, with as many as 86% of pay TV subscribers able to find Netflix on their operator’s set-top boxes at the end of last year.

“The increase in the number of pay TV partnerships with Netflix marks a distinct shift in the industry, as more and more of the streaming giant’s traditional ‘enemies’ cozy up through onboarding deals,” said Elinor Clark, analyst at Ampere Analysis, in a statement.

Sponsored by IBM

Webinar: Delighting Viewers with Content: Cloud Enabled Remote Production

Wednesday, June 24, 2020 | 12pm EST / 9am PST
IBM Aspera's multi-cloud roots enables broadcasters to move terabytes of video content at maximum speed, allowing production teams around the world to co-create, untethered by location. Hear how Fox Sports delighted millions of Super Bowl LIV and 2019 FIFA World Cup viewers by producing more content than ever, delivered to viewers across broadcast and web devices alike.

RELATED: Netflix increases domestic subs to relief of shareholders

Netflix has made big inroads in some countries, while it has yet to break through with operators in others. Netflix has deals with all the major pay TV operators in France, but the company has yet to attract many of the large pay TV operators in Central and South America, Asia Pacific, and Central and Eastern Europe, according to the firm. Ampere said that Netflix currently has around 40 million subscribers in these territories, making these key target areas for the streamer to pursue.

Clark also said that these partnerships can be lucrative for pay TV operators, providing them with an additional revenue stream when there may be downward pressure on their average revenue per user (ARPU) and, in some markets, cord-cutting.

Suggested Articles

It’s been almost a year since we last broke down the timeline for price increases at YouTube TV, AT&T TV Now and other virtual MVPDs.

Sling TV is responding to new price increases from competitors YouTube TV and fuboTV by offering its subscribers a one-year rate guarantee.

Peacock has reached a deal with ViacomCBS to carry CBS and Showtime series along with Paramount films when it launches.