Netflix to Add Second-Screen Capability

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netflix_logo_225.gifBusiness Insider is reporting that, later this year, Netflix will add second-stream capability, meaning that users will be able to access related information on their handheld device while streaming Netflix content to their TV. A recent Nielsen report states that 62 percent of North Americans like to browse online while watching video programming, and Netflix's second-screen function could provide easy access to actor/director/episode info, social media features, or advertising opportunities related to what's being shown.

From Business Insider
Watching Netflix one screen at a time just isn't enough anymore. What is this, 2011? Time to take it to the second screen!

The streaming giant has announced a new feature, set to debut later this year, aimed specifically at addressing the ever-growing consumer trend of "second screening" in which a viewer uses their phone or tablet at the same time as the television while watching a program.

A Netflix watcher who uses his or her phone to send the content to the TV will get supplemental content on their handheld device, such as behind-the-scenes information about the actors or other trivia.

A Nielsen study showed that 62 percent of people in North America browse online while also watching video programming, and 58 percent of people do the same worldwide. So Netflix is smartly trying to capitalize on a significant chunk of market wherein advertisers and content creators can reach and engage with the audience on multiple fronts.

At the moment, Netflix plans to only show its own cataloged information, but the potential is clearly there to open this space up to third parties.

Margaret Boland and Robert Elder of BI Intelligence, Business Insider's premium research team, point out that Netflix could have an enormous range of partnerships on its hands because it theoretically could push any content it wants on the second screen as long as it relates to the program somehow.

If Netflix were to charge content partners to gain access to this second screen audience, then it could tap into a significant new revenue stream outside of the subscriptions on which it currently relies wholly to generate revenue.

To read the complete Business Insider story, click here.

Additional Resources
Five Questions to Consider Before Cutting the Cord at HomeTheaterReview.com.
Netflix Sees Continued Subscriber Growth at HomeTheaterReview.com.


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