Netflix Surges on Earnings Release

With several exclusive shows such as the ‘Stranger Things’ being aired across the globe, Netflix Inc has managed to acquire an extensive customer base not only in the United States but also across other regions in the world. As per the figures of this quarter, the company recorded a staggering 50% rise in its consumer base which directly impacted its shares that witnessed a 20 percent rise in trade profits.

The Netflix Strategy

Netflix Inc. made a massive investment last quarter in promoting an expansion in other regions outside the home market, which was unable to reap the rewards in the quarter figures. However, in the wake of adopting ‘original programming’ as it unique selling proposition, Netflix Inc has been performing exceptionally well in the current quarter with its profits soaring well above the expectations. Its vision for making higher material profits from its global expansion in the coming year can be now deemed to be on the right track. From a closing figure of $99.80 in the last quarter, the Netflix shares rose to a sizeable $119.82 this quarter. As compared to the average analyst estimate of 2.01 million, the brand acquired an impressive 3.20 million international subscribers within the third quarter alone. As per a recent survey of FactSet StreetAccount, Netflix Inc. managed to add 370,000 new subscriptions in the home market, which was a figure well above the analyst estimate of 309,000. The analyst at Wedbush Securities, Michael Pachter remarked that as long as Netflix Inc. is able to deliver in terms of a steady subscriber growth and popularity, it will continue to rake in profits with the performance of its shares in the stock market.

The vision of the future

Netflix Inc. has already expanded its roots in north of 130 markets across the globe, with an exception of China. Despite the fact that the company has no current plans of taking the huge plunge on the Chinese soil in the near future, it does have hopes of launching the services in the country somewhere down the road. Meanwhile, the brand will continue to pour in funding for promoting its original licensed movies and TV shows as a major strategy for attracting global audience. The chief executive at Netflix Inc., Reed Hastings remarked that they will continue to spend on content as the primary marketing strategy for their company for the next couple of years to come.

Leave a Comment