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Category Archives: NetFlix

Netflix Now Available In Every Major Global Market Except China

Reed Hastings, co-founder and CEO of Netflix, delivers a keynote address at the 2016 CES trade show in Las Vegas

The streaming media company is going to face trouble from Time Warner, but it managed to be in 130 countries.

According to reports by Bloomberg, Time Warner’s chief financial officer was wondering over the idea of making complete seasons of shows available for Pay-TV customers on demand. This idea of online streaming services came through when people started to ‘cut the cords’ and moved to on demand subscriptions – all this done to take on Netflix, Inc.

Almost about a year ago, the chief executive officer Reed Hastings had announced his plans on a global expansion. In a thirst to be in almost every country in the world, the company set a timetable for making the service available in over 200 countries by the end of 2016. At the time, it seemed too good to be true but just recently at the Consumer Electronics Show in Las Vegas, the streaming media giant announced that it has officially gone live in over 130 countries; so it is only 70 countries behind from its target.

After the announcement, Netflix stock rose by 9% on Wednesday. Now the service is almost available in all the significant market with one exception, China. In a day’s time (figuratively), the company tripled the number of countries. It is now available in most of the biggest market in the world with broadband subscribers.

Past week, it has been launched in Russia and South Korea, which made the company’s market too big from what it was a week prior to the announcement. With these latest launches, there is a little difference as initially it always had partnerships with a number of local businesses along with the availability of various languages but this time round it will only have the following languages: Korean, Chinese and Arabic.

Additionally, the video streaming media giant has not spent a lot of money in making original content for the specific countries as well. Due to this, the distribution of original movies and shows will be quite limited in these markets. One of the biggest costs it incurs while entering a new market is marketing the service. During the current year, it is planning to spend relatively aggressive in marketing so it is quite evident that the service is bound to see international losses in 2016.

Average international contribution loss was of $75 million each quarter during the first 3 quarters of 2015 and the company predicted that for the 4th quarter, it is expected to see an increase in the international contribution to as much as $117 million. Throughout the year, the losses are highly likely to cross the $100 million mark. Subsequently, with the marketing cost, it will have to incur another cost of improving its service in the latest markets.

 

 
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Posted by on January 12, 2016 in Finance News, NetFlix

 

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Netflix Rated As The Hottest Stock In Market By Analysts

Netflix Rated As The Hottest Stock In Market By Analysts

A reputable analyst, Guggenheim, sees Netflix stocks to hit the $160 per share price in the next 12 months

Netflix Inc. is leading the video content market for a long time now. The company started providing online video content service back in 2007 and since then it has promised not to stop expanding at any cost. It is now considered to be the power house of top notch content and provides its services to more than 70 million subscribers in almost 80 countries. The company started to gain traction from its original production which began with a political drama series House of Cards and went on with the new launches of Orange is the New Black and Narcos.

With its original content programming, the streaming giant has increase its popularity among the TV viewers as well as it has been praised by the critics across the globe. The streaming service provider also received eight dominations at the Golden Globe Awards after beating the king of original programming HBO. This proves the domination of Netflix in the TV industry.

Apart from the Golden Globe Awards, the company was in the same situations for the nominations of Screen Actor Guild Awards. Netflix easily managed to make its name in the list of ten different categories of nomination. The nominations included Kevin Spacey along with his co-actor Robin Wright from the popular House of Cards and Uzo Aduba from Orange is the New Black. Idris Alba also bagged a nomination for Beasts of No Nation.

The company announced that it will be doubling its original content division next year. The company will be closing this year on a high and this will have a great positive impact on Netflix stocks next year when the New Year starts.

It is not only TV and film critics that are currently applauding and appreciating the quality content Netflix is providing to its viewers but it seems that Netflix is favored and appraised at the Wall Street as well. The analysts at Wall Street have joined that ‘I Love Netflix’ bandwagon as well. A famous analyst, Guggenheim, mentioned in his detailed report that receiving so many nominations in the Golden Globe awards and SAG will contribute positively towards its subscription growth. The company’s current focus is to expand its services across the globe hence it is planning the right way to be in 200 countries by the end of 2016.

Based on the performance Netflix has put up this year, analysts believe that the stocks can move up to $160 per share easily in the next 12 months.

 
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Posted by on December 21, 2015 in Finance News, NetFlix

 

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HBO Beats Netflix In Original Programming Space

HBO Beats Netflix In Original Programming Space

HBO finished first in the list for being the best original programming provider; whereas Netflix ended up at fourth.

Netflix Inc. entered the entertainment industry in 1998 and it came with an objective to rule over the industry in the times to come. It had plans to ‘cut the cords’ of the cable TVs i.e. to eliminate the existence of the cable TV providers and transform itself into a bigger organization than HBO. The streaming giant dreamed to be HBO quicker than before HBO starts following Netflix. So far, it is on the right track.

The online streaming giant used to only own the rights of popular shows from different companies but recently it decided to own and produce original content as well. This indeed is a big threat to not only internet TV providers but other cable TV and broadcasting companies as well who are into original programming, especially HBO.

Through the years, there has been an ongoing battle between Netflix and HBO, but the former’s vigorous expansion plan could see it leading the market over any other provider easily. The company has expanded its global footprints in almost 70 countries now with having more than 70 million subscribers. However, the competition in the market is getting tougher, fiercer and stiffer with the passing time. Hence, the reason of massive investments by big name companies, including HBO, Netflix, Showtime, AMC, etc. are to ensure that their next show is a big hit.

The main objective is to attain the most consumer attention but at this point, the real battle is in between HBO and Netflix who, in no time, has turned into one of the biggest original content producers. The streaming service provider is still not close to HBO in the list of best ratings of original series by different providers. HBO was leading the list by a mile where its average rating was above 80 on a 100-point scale. Showtime came second in the list with 75.1 rating whereas FX was third with 74 rating. Netflix finished fourth with a rating of 73.6 on a 100-point scale.

According to BGR, “First off, Netflix remains committed to producing an ever increasing amount of original programming. Indeed, it’s why the company had no qualms about letting its move licensing deal with Epix expire.” The company released various new original contents this year and the majority reviews were in its favor. Its two original best prime examples are Unbreakable Kimmy Schmidt and Daredevil. The viewers and the critics loved both.

 

 
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Posted by on December 3, 2015 in NetFlix, Technology

 

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Netflix Invests $50 Million In A South Korean Movie

Netflix Invests $50 Million In A South Korean Movie

Director Bong Joon-ho, right, and actress Tilda Swinton arrive for the awards ceremony at the 39th American Film Festival, Saturday, Sept 7, 2013, in Deauville, Normandy, western France. (AP Photo/Lionel Cironneau)

Netflix takes another huge step towards global expansion with a huge investment.


Video entertainment provider
, Netflix, has made its motto to expand worldwide as quickly as possible, it is grabbing every opportunity to expand and grow its name internationally. It has provided finances of $50 million to a South Korean Film, ‘Okja’, which is going to be directed by Bong Joon-ho, whose previous movie was a hit named ‘Snowpiercer’.

The company has not stopped its search for high quality original content and is refining this strategy more and more every month, it is not afraid of losing money when it comes to achieving content. This also a good way of reducing the cost of the content it achieves. According to business finance news, this is the most risky investment the company has made so far. The amount of $50 million is huge for the movie because the previous hit only cost $42 million and this investment is the biggest one making Okja the number one expensive Korean move till now.

Regardless of the risk, this is going to beneficial for expansion of Netflix Inc. by collaborating South Korea’s biggest filmmaker. The famous director said in statement regarding this development, “It really is a fantastic opportunity for me as a filmmaker. For Okja I needed a bigger budget than I had for Snowpiercer and also complete creative freedom. Netflix offered me the two conditions that are difficult to have in hand together.”

The film is going to be released in Asia with the help of the video streaming services company, which is making huge efforts and progress in coming into an Asian entertainment business. The actors in the film are from Hollywood, Jake Gyllenhaal and TIlda Swinton, and the production will take place in New York and South Korea in April and expected to be released in 2017.

Netflix is very famous when it comes to entertainment and especially, the recent success with Netflix TV shows is obvious in the market and audience. It is now starting new shows and is planning to have its own in-house shows now. It currently has 65 million subscribers globally.

This movie is releasing at a beneficial time. Netflix is launching in South Korea in 2016 and not long after that is the release of this movie, which helps the company’s growth in the country, helping it to get more subscribers.  It has also made an investment of $60 million in Brad Pitt’s movie, War machine. This shows the company is fearless when it comes to content and taking risks in order to achieve its goals.

Netflix stock closed at $108.92 on November 12.

 

 
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Posted by on November 23, 2015 in Finance News, NetFlix

 

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Netflix Holds Chip Cards Responsible For Poor Subscriber Growth

Netflix Holds Chip Cards Responsible For Poor Subscriber Growth

Netflix believes that chip cards have played a role in adversely affecting is performance.

Netflix has justified its poor performance. The Scotts Valley based company stated that the number of its US-based users decrease after their old cards installed in its system stopped operating, which adversely affected the subscriber growth later this year. Payment experts were shocked to know that a company, like Netflix, was dismantled by the introduction of chip cards, which they state, should have affected the operations in an insignificant manner.

Netflix news disclosed that majority of card numbers have not changed at all as a consequence of the button, and even when they were altered, the company should have been ready to update the details. Banks try not to alter account numbers until and unless a card has been stolen, so their clients are not required to update their account information with subscription facilities like Netflix, Robertson stated.

Bank of America Corporation and JP Morgan Chase & Co., which are amongst the biggest card providers in the world’s largest economy, stated the numbers of their client account have not altered as they offered new chip cards.

Netflix Breaking News exclaimed that the shift to safer chip-loaded cards in America has long been acknowledged, so enterprises that are earning a large portion of their sales revenue from automatic monthly payments could consume a lot of time to get themselves ready for it. Some banking institutions altered the account numbers, the media giant’s officials stated on its earnings call Wednesday, which was one of the many factors responsible for the slower growth last quarter.

Netflix news today revealed that the high-tech company stated, “It’s an issue of scale, when you’re processing recurring payments for some 42 million people, the influx of new credit cards, many of which had new expiration dates or security codes, can have a discernible impact even though it’s quite small relative to the size of our U.S. membership.”

Netflix was unable to expect a rush in what it identifies as an instinctive churn, CEO Reed Hastings stated in an interview. The enterprise did not alter its forecasts and thus failed to achieve its targets. “It’s a minor tactical issue,” Reed stated.

Vendors normally have established a system to update the details of their consumers and dodge what Reed identified as an “inability to collect” from users who attained the new cards. Most employ so-called updater facilities, which inform them of alterations in client’s cards.

Investors value Netflix due to subscribers. Thus, a rise in subscribers would lead to increase in its value.

 
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Posted by on October 20, 2015 in NetFlix, Technology

 

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TV businesses are redefining their relations with Netflix

TV businesses are redefining their relations with Netflix

Netlfix’s relations with TV giants are to be redefined.

Netflix’s relations with the media sector are about to be redefined. Netflix news revealed that two of the largest US TV network firms have disclosed that their relations with the Californian organization have changed, amidst worries that the “cord customers” clients of the industry have adversely affected the company’s reputation.

The streaming giant and its opponents have authorized most of their content from the large networks and have turned into a significant revenue source for the industrial sector. Netflix news today affirmed that investors fear that digital video service provider’s achievement could decline in ratings, pay-television subscriptions.

CEO of Time Warner, Jeff Bewkees, has stated that platforms, such as Turner, required to be sure that authorizing charges from Netflix were not cannibalizing potential revenue sources. Time Warner is the owner of the Turner network, which is known for running Cartoon Network and CNN.

Mr. Bewkees stated at the Goldman Sachs Communacopia in New York, “We don’t want that money to replace the more money that someone else was paying us”. When questioned about whether he believed that the growth of Netflix was accelerating cord cutting, he stated, “I do”.

Mr. Jeff recommended that when the purchase of content would take place in the coming times, platforms such as Turner should program through their own video-on-demand facilities, or those run by the developed pay-TV groups. Time Warner’s HBO division has lately introduced its own digital video facility HBO, and has stated that it could encompass television from Turner and movies produced by Warner Bros Studio.

Netflix Breaking news reported that an official at 21st Century Fox, James Murdoch, has stated that Netflix was a “valuable partner”, but that the company could opt to approve more of its content separately to Hulu, a competing facility that is owned by a number of businesses, including Walt Disney, Comcast’s NBC, and Fox Network.

Mr. James stated, “The business rules are changing and our thinking is evolving”. He added that Hulu compensated Fox in a manner that it is “attractive to us”.

Industrial analysts have claimed that the company’s redefined relations with television agencies would not only play an important role in improving its image but also increase its market share. It is probable that television viewers would cheer the redefinition of relations.

Netflix’s officials should make their efforts to collaborate with the TV firms to grow in the competitive market. This would mutually benefit the business and boost their prospects.

 

 
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Posted by on September 28, 2015 in NetFlix, Technology

 

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Netflix Inc. Stock Dropped Despite $125 TP ByCantor Fitzgerald

Netflix Inc. Stock Dropped Despite $125 TP ByCantor Fitzgerald

Netflix stock trades in the red today despite Buy rating and $125 target price from Cantor Fitzgerald

Yesterday, Cantor Fitzgerald has published a report on Netflix Inc. stock, reiterating its Buy rating and bullish price objective of $125. The streaming giant’s stock dropped in spite of the recurrence of trust.

Last night, the 67th Emmy Awards ended with Netflix getting Emmy awards, whereas it gets 7 precious years, the analysts said that this is a great performance for a streaming service that is still in its early stages. The analysts also said that Amazon and Netflix altogether was nominated in 46 awards, specifying their strength in the streaming service sector.

The analysts also added that there are several positive points, which points out the company prospects. These include the robust viewpoints of latest original, Narcos, the continuing expansion in Asia, and the increase in price in Europe.

The latest launched series, which was made available last month, got robust ratings on both IMDB and Metacritics, rated 9.1 and 9.2 respectively. The analysts believe that this is the good sign for the users growth as in the past, an optimistic correlation between originals and increase in subscribers has prevailed.

Netflix Inc. has declared plans to launch its services in over 200 countries by the end of next year. The introduction in Japan took place during the start of the year, whereas that in Taiwan, Hong Kong, South Korea and Singapore is most likely take place in early 2016. The expert thinks that these launches of services will help the company to sustain its subscription growth for the coming two to three years.

The service subscription fee was increase by 1 euro in Germany, Netherlands and France to 8.99 euro. According to analysts this increase specifies the company’s strength and robust adoption in the region.

The price target of $125 is calculated on the basis of 7 year discounted model of cash flow, assuming weighted average cost of capital (WACC) of 10% and 4% of terminal growth. Netflix stock now trades at multiples of 78.7x and 6.5x for projected EBITDA and revenues of fiscal year 2015, and multiples of 79.3x and 5x for FY16, respectively.

The threats to the price target include slowing in subscription growth, competitive pressure, global losses, faster deterioration of DVD division, and failure in recommencing content contracts with suitable terms.

The Street is bullish regarding the stock, with 23 analysts giving it a Buy, 16 suggesting a Hold and 6 giving it a Sell rating.

Netflix stock news shows that the stock was down 1.82% to 98.7 at market close yesterday.

 
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Posted by on September 24, 2015 in Finance News, NetFlix

 

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