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Netflix, Inc. (NFLX): International Market To Offer Much Needed Growth In future

Netflix, Inc. (NASDAQ:NFLX) efforts on the international front continue to pay off seen by its subscription base reaching the 60 million mark having been impacted by the creation of more original content. The streaming giant capped an impressive first quarter with a 24% jump in sales. Fox Business, Gerri Willis, affirms that the addition of 2.6 million new subscribers on the international front is sure to go well with investors.

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Expansion on the international front has seen Netflix, Inc. (NASDAQ:NFLX) debut its services in Australia, New Zealand and Cuba as the company pursues markets that it believes will offer the much-needed growth opportunities. HBO unveiling its own streaming service in the US could force the company to pursue further markets as competition in the US continues to be stiff, differentiated only by the type of content on offer.

“Netflix delivered a mixed earnings report after the bell the on-demand streaming company beating the street expectation for subscriptions. They added 2.3 million customers in the US and another 2.6 million customers abroad,” said Mrs. Willis.

Expansion on the international front is however coming with its fair amount of challenges at the back of a dollar that continues to strengthen against other currencies. The streaming giant’s profit took a hit in the first quarter, which the company attributes to the ongoing fluctuations in the currency markets.

A positive earnings call saw the shares rally by 12%. Netflix, Inc. (NASDAQ:NFLX) shares are up by 40% this year as the company continues to register a larger market cap compared to its rival in the space led by CBS and Viacom.

The company now has on its ranks 60 million subscribers made of 40 million in the US and 20 million on the international front. Expansion on the international front has mostly been driven by the amount of growth Netflix has generated in the 50 countries it already serves.

Netflix, Inc. (NASDAQ:NFLX)’s Desire to deliver more original content like Orange is the New Black, and House of Cards should only work to the company’s advantage in attracting more subscribers in the long run.

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