Content quality will be the key differentiating factor in the online streaming space where Netflix operates. With players such as HBO, Dish and Sony entering the market, competition is getting intense and revenues depend primarily on subscriber growth domestically and internationally. While international markets have shown tremendous growth in subscriber base, their contribution towards profitability has not yet begun. Further, low Internet penetration, lower disposable income and fewer digital devices are some of the obstacles which Netflix faces in its international expansion. The domestic market is huge and unsaturated, thus quality original content which appeals to this market will attract more subscribers and can be a key revenue driver for Netflix in future.
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