The survey conducted by Morgan Stanley (NYSE: MS) showed that Most Americans have chosen Netflix (NASDAQ: NFLX) over HBO as the “best” original content provider, compared to other Internet-video as well as premium TV services. HBO, ranked at the top position in the best original programming category, has lost to Netflix.
Netflix topped the list of non-cable and premium services. It is important to note that the survey includes original services from non-cable and premium networks including HBO and Showtime, and excludes traditional TV networks or licensed programming. The survey comprised 2,501 adults from the US.
The company pulled in 5.6 million new subscribers during the fourth quarter, 4.0 million of which were from international markets. The results were far above investor’s expectation. There’s a chance the company could still expand dramatically in 130 additional countries. This number means that the company has to satisfy the international audience. NFLX stock price rose 7.7% after the numbers showed in January. The new official numbers will come in on April 18th. Analysts believe that more subscribers would sign up.
Here’s the reason: Netflix is much cheaper than traditional cable. It costs about $0.09 per hour of television as opposed to $0.30/hour for regular cable. Besides, you could watch almost whatever you want.
The analysts don’t expect Netflix’s profits to soar right now. There will be a delay since it will have to keep expanding its selections. But, the company just increased its monthly fee, which would lead to the kick off of its earnings in the 2nd quarter in 2016.
As long as the giant online streaming company locked n subscribers the profit margins will start going up. I don’t think we have to wait for a long time to see the surge in the stock price. The market is simply waiting for more international subscribers. The stock price would easily rocket when it gains more market shares in the near future.