Netflix is the largest online subscription streaming service in the world. And the company has seen steady growth over the past few quarters too, thanks to its rapidly expanding library and critically acclaimed original content such as House of Cards and Orange is the new Black.
Netflix is on top of the world right now and Bloomberg estimates that U.S. Netflix subscribers have now surpassed 33.1 million, with about 2.05 million being added in the previous quarter alone. The company’s shares tripled over the course of 2013, which is why investors are going to view the subscriber and revenue forecasts closely to determine whether or not Netflix’s elevated stock price can be justified. In fact, Rich Greenfield of BTIG thinks that Netflix is on track to cross 40 million subscribers by 2015.
Though Netflix is experiencing steady growth, it is facing strong competition from services like Amazon Prime, which has already accumulated up 20 million subscribers. Hulu has 5 million subscribers and major investments in the production of original content as well. These contenders could pull ahead at any time. All it takes is more great content, which leads to more subscribers. So Netflix had best stay on top of its game.
Source UbergizmoFiled Under: Technology News, Top News