In the very long term, Netflix could be looking at an addressable market for online entertainment north of a billion global households. Today, 40% of the American broadband market subscribes to Netflix. Yes, that figure is for the home market -- but then again, it's just an interim number with more growth and wider adoption still to come. The company could multiply its subscriber counts and revenue many times over by making Silverman's global distribution dream a reality. Content costs will also increase thanks to the far larger target audience, but Netflix aims to reach an endgame with 40% contribution site web margins home in the U.S., and margins in many abroad markets may rise to similar levels. Silverman wants to reach the whole world with a single distribution contract.
29 Dec 2014