Netflix, Inc. (NASDAQ:NFLX) Popularity Is At An All Time High

We all love TV and watch at least 3 hours on average a day, more than any other activity. We watch sports, movies, series, news and many other things. We never stop watching and the ones in the industry love it.

One of them is Netflix (NASDAQ:NFLX), which offers low prices on its streaming service and has become a giant. The company has capitalized on what we like and there’s still room for growth.

Since its creation more than 18 years ago, Netflix has grown notably, and so has their stock price. A share of Netflix’s stock now goes for around $700, which is a huge price for those trying to invest in it. That will all change soon as anyone who owns a stock from them will get seven shares for each one they own when the stock officially splits two weeks from now. The value won’t change but it probably will when smaller investors start going after them.

The company seems to be doing the same as other giants in the industry, a move that has paid off for them and could end up doing the same for Netflix. The love for TV is there so they shouldn’t have problems attracting more investors when the changes go in effect.


Success

Netflix was not always seen as the next big thing. Not too long ago, investors were worried that the popular service wouldn’t be able to keep growing its number of users. They also feared that the service would have trouble in other countries and felt the company was focusing on quantity but not quality.

Those fears seem to be gone. The service continued to bring more users, hitting 40 million paying US customers and 20 million around the world according to the company’s latest numbers.

Netflix On DevicesNetflix is not alone, the service has competition that is getting stronger and stronger as the months go by, traditional cable and broadcast networks plus Hulu Plus, Amazon Prime, Showtime, and HBO Go all want a piece of the cake. But according to Nielsen, the company that measures TV audiences, more than 40 percent of American homes pay for a streaming service, 36 percent of that goes to Netflix. A big difference from Amazon Prime and Hulu Plus, which only have 13 and 6.5 percent.

The service is so popular that analysts at Wall Street firm FBR Capital Markets, said that if Netflix had “ratings” like regular TV, it would have a larger 24 hour audience than any of the big broadcast networks out there in less than a year. This is just an estimate by the firm, but they got this from the billions of hours consumers watch on its service, which easily beats the broadcast networks.

People Like The Content

“Why is Netflix winning consumers’ time and attention? It’s really simple,” says Richard Greenfield, a media industry analyst for BTIG. “They’ve put the consumer first, giving them what they want, anytime they want it, and on any device.”  Netflix offers consumers lots of content with no commercials, he says. Sounds simple, right? But seriously, what more could we want?

“They have invested a lot in technology and content,” says Jeff Wlodarczak, CEO and senior media and communications analyst at Pivotal Research. “So their service looks better than alternatives. It works on more devices, the user interface is better, and their content is quite compelling.”

Many companies are trying to follow its footsteps and that’s why they’re not stopping there. The service adds more and more content that its users ask for every month. New series, documentaries and movies join its already massive library.

Are you subscribed to this service? What should they add next?




LEAVE A REPLY