Netflix, Inc. (NASDAQ:NFLX) is looking to take over the world with an ambitious plan of covering over 200 countries by 2016, from the current 50. Fox Business, Jo Ling Kent, reports that as part of the expansion drive; the company will also be looking to produce up to 320 hours of original programing seen as one of the ways of attracting more subscribers.
The giant streaming company seems to have been buoyed by its recent subscription growth despite facing an uproar at the end of last year amidst a slight increase in subscription fees. Progress has been so strong on the international front giving Netflix, Inc. (NASDAQ:NFLX) the much-needed confidence that it can cover more than 200 countries by 2016
“Shares of Netflix still moving after seeing their biggest gain in nearly a year. […] The streaming video giant added more than 4.33 million new subscribers overall in its most recent quarter that beat its own estimate of just 4 million. International subscribers grew more than expected,” said Mrs. Kent.
A push for the Chinese market should be a great addition to Netflix, Inc. (NASDAQ:NFLX) considering the country is home to more than 1.37 billion people and considered to have one of the fastest growing internet penetration levels. Expansion into other areas more so the content creation business, continues to be a point of concern to a number of investors
A bone of contention has always been that with a tap-in of other business areas, Netflix, Inc. (NASDAQ:NFLX)’s profit margins could substantially be affected. It is now a question of whether the company is growing too fast just like Amazon.com, Inc. (NASDAQ:AMZN); something that might come back, to bite back in the near future. The stock is currently trading at high levels also eliciting debate as to whether it might be time to recoup some of the investments awaiting to see how the stock performs going forward.
Growth into other markets away from the U.S. is sure to be a great business for Netflix, Inc. (NASDAQ:NFLX) in terms of increased subscriptions. Caution should also be taken to avoid scenarios where operating expenses become too much consequently affect profit margins.
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