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Netflix's strategy fortified its existing revenue model-acquiring and retaining subscribers-and even opened up revenue streams such as content licensing or even a branded channel with traditional distributors. Netflix spent grossly USD 100 million to produce the first season of House of cards plus additional marketing investments, including advertising buys for primetime TV spots and high-profile billboards. If House of Cards bought in half a million Netflix subscribers, with the same average life span as current subscribers (an estimated 25 months), the show would have just about broken even in two years. The real test was the lifetime value of these customers. What if many or most turned out to be opportunistic viewers who ended up canceling their subscriptions a few months after watching House of Cards?

Then the breakeven opportunity looked vastly different. For example, if the average customer life span was closer to four months, then Netflix would have needed more than three million subscribers for the project to breakeven-essentially, a 43 percent increase over its current average acquisition rate. Needless to say, this debate is now closed and, in addition to its string of series, very successful Netflix has broken many recent dramatic deals – it plans to release the sequel to Ang Lee's Crouching Tiger, Hidden Dragon day-and-date online and in Inmax theaters, and has stuck an exclusive four-picture deal with Adam Sandler – which has supposedly enraged many in the business.

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Speaking at a keynote in Cannes's MIPCOM in November 2014, Netflix chief content officer Ted Sarandos stated that the company was only looking to modernize a theatrical distribution model that "is pretty antiquated for the on-demand audiences we are looking to serve". Netflix, he said, is not looking to kill windowing but rather to "restore choice and options" for viewers by moving to day-and-date releases. Not only that, but Sarandos said Netflix would be expanding into more niche genres, including the financing of documentaries and art-house films. Here, the marketing stunt with teaming up with mega movie star Leonardo di Caprio on the release of documentary Virunga focusing on the fight against poaching threatened gorillas in the Democratic Republic of Congo. The documentary was released simultaneously on Netflix and in theaters in York and Los Angeles on 7 November 2014.

Amazon Prime's tally in content creation and production is also impressive, most notably thanks to its decision to engage Woody Allen to write and direct a series for its SVoD services in January 2015 and its competitive force in TV by landing two Golden Globe trophies for best comedy for its critically promoted Transparent and actor for series star Jeffrey Tambor also in January 2015. So the future is more than bright, for SVoD providers, but what are the threats to their growing supremacy and market share? A sorry state of affair for SVoD providers and traditional video distributors: counterfeiting in the video streaming market A tentative expansion to international territories? A false alarm Initially, the major threat to the rise and scaling up of SVoD services worldwide came from the reluctance, by some European countries to accommodate and "psychologically adapt" to the business model offered by the likes of Netflix. The French, in particular, were a headache: In the own words of then French Minister of Culture Aurelie Filipetti, "(the French) are absolutely not going to close the door to (Netflix), but they need to get used to the differences with the French market and how they can participate constructively.