Market Crowding Could Slow Netflix’s Growth

Netflix (NFLX), as well as other online video services that have been gaining subscribers at the expense of traditional pay-TV companies, could have a hard time accelerating or sustaining robust growth. According to a report by consulting firm PwC, the market for online video services is becoming crowded. For example, consumers feeling overwhelmed by the streaming options could return to a cable subscription, which can provide access to a mix of content in one convenient place. Online video services such as Netflix, Hulu, and Google’s (GOOGL) YouTube have been recruiting customers from the pool of consumers abandoning traditional cable plans for slimmer and usually cheaper online options.