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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, Inc. Has A Bright Future

Netflix, Inc. Has A Bright Future

The streaming media giant is doing well and making efforts to making its future bright regardless of the increase in the company’s cost.

The future seems bright for Netflix, Inc.; after having an incredible year in terms of original content, positive stock and satisfied customers, the streaming media is hoping for a much better 2016. At the UBS Global Media and Communications Conference, Ted Sarandos, the streaming media corporation’s chief content officer explained that the stock of the streaming media company’s stock has shown amazing results this year and is currently standing at 160% YTD. This percentage is a result of the on-demand subscriber’s original programs Narcos and Jessica Jones.

Narcos and Jessica Jones have managed to shake up the traditional television industry with its success. Furthermore, the chief operating officer of the on-demand subscription company, at the conference talked about the company’s 31 original programs and 10 feature films which the company is likely to introduce by year 2016. He added to his speech that the company will be adding comedy specials on its network as well by next year.

Attractive news that was revealed by the COO of the company which got the audience to hold onto their seats was that the company had future plans of getting into the sports streaming. This news should not come as a surprise to the audience as sports channels including ESPN, CBS Sports etc. have gained quite the popularity in the streaming industry.

The sole reason for the popularity that the streaming media has managed to gained amongst its customers and all across the world is because of its original programming. Due to its original content, the company is the biggest players in the market and has managed to give tough competition to its rivals such as Amazon Prime and Hulu. By the end of the previous quarter, the streaming media had over 69 million subscribers. The streaming media’s two rivals have 40 million to 50 million customers and 9 million respectively.

Netflix, Inc. has been facing more costs since it has expanded to a number of countries in the current year due to which it could increase its subscription cost. According to the findings by the Huffington Post, in case the streaming media giant plans to increase their subscription cost there is a good chance that customers might cancel their memberships. Due to these high costs, there is a less chance that the company will enter the sports channel market.

As for Netflix Stock, it has dropped by 9.18% in the last seven days while in a month’s time the stock has posted gains of 14.72%. The stock of the company was trading at $118.91 in the previous trading session.

 
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Posted by on December 14, 2015 in Technology

 

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Reed Hastings Predicting The Future Of TV for Netflix Users

He says that Internet streaming will soon take over the traditional television

 

He says that Internet streaming will soon take over the traditional television

All those people who’re addicted to Netflix and can’t spend their nights without it, must take a look at the speech that the service’s Founder and Chief Executive, Reed Hastings, delivered during the last week at Berlin. He expressed his views about the future of TV and how it will evolve over the passage of time.

According to Netflix news, the giant has never been very private about its long-term plans; in fact its document on “long term view” has served as a roadmap for users regarding the company’s future. Although the past few years have been different with the changes in the strategy of the company from visionary to conventional wisdom, for example the company’s stance maintains, “Internet TV is replacing linear TV.” One can only wonder what Netflix’s next move will be in terms of development, while other streaming services will work toward reaching the same level.

During his speech at the Republica conference, Mr. Hastings claimed that the regular television will only survive for two decades. “We will come to see that linear TV declines every year for the next 20 years, and that Internet TV rises every year for the next 20 years.”

During this course of time, Netflix will work on its original content production and the ownership of global distribution rights for the produced TV shows and movies, according to latest Netflix updates. The aim is that by 2016, Netflix will be available in every country of the world, which is a great news for those who don’t have access to the online streaming service.

There weren’t any questions about the reports that claimed Apple’s release of  the new hardware and software for viewing television in the coming month, but he mentioned that the future televisions “will look like a large iPad,” including a collection of apps. He strongly claims that TV sets are simply Internet-connected displays.

Mr. Hastings is confident that Netflix will lead in TV shows and movies, while other companies would be better at other kinds of entertainment, sports, for example. He also commented how sports will also soon move from being watched on the Internet from its traditional form.

He further said that sports programming will be forced toward the Internet with the increasing popularity of 4K ultra-high definition video. Mr. Hastings said that by the time the FIFA World Cup 2014 arrives, “much of the world will watch the World Cup in incredible video quality over the Internet.”

Furthermore, Mr. Hastings also spoke about other things including how he was so nervous about investing $100 million on Netflix’s first original series, House of Cards, “at the time, that was an intense debate, and we almost didn’t do it.”

He also brushed upon his regrets over the company’s decision to form Qwikster, a separate DVD service company and that Netflix will always be a streaming service and does not want to complicate its service by adding a download option.

 

 
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Posted by on May 21, 2015 in NetFlix, Technology

 

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