Netflix, Inc. (NFLX): A Full Analysis

Page 2 of 2

Redbox combines the user experience of vending DVD rental with online streaming content. The parent company, Coinstar, Inc. (NASDAQ:CSTR), has partnered with Verizon to introduce a streaming option that could hurt Netflix, Inc. (NASDAQ:NFLX)’s profits in the long run. However, as DVD users convert to online viewers, Redbox needs to change it’s business model to continue to grow with market trends.

International viewing

Netflix is well on the way to benefit from consumers watching internet TV as long as they continue to hold market share. With 1 million new international customers in the first quarter, membership grew to 7.1 million globally, with global revenue accounting for 14% of total revenue for the year. Netflix, Inc. (NASDAQ:NFLX) signed a multi-year kids programming agreement with Hasbro, Inc. (NASDAQ:HAS), becoming the leader in streaming content for kids with over 2 billion hours in streaming time in 2012.

Wrap up

Netflix has become a game changer with internet content streaming. However, with increased competition and tight profit margins, the company will have to continue to create original content to drive viewership and retain audiences.

The article House of Cards: Netflix and Game Changing Innovation originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2