WHAT SHOULD WE EXPECT FROM NETFLIX?

  WHAT SHOULD WE EXPECT FROM NETFLIX? Will the company be able to address its investors' concerns? Digital streaming pioneer Netflix (NASDAQ:NFLX) is now a giant in its field, with a market cap of $14 billion a decade ago, reaching a whopping $223 billion today. The company, which has a subscriber capacity of 208 million, reached $26,4 billion in revenue in the last quarter.

Netflix Continues to Serve in More Than 190 Countries!

It is known that such achievements always attract competition. The slowdown in growth in the first quarter of this year has prompted investors to ask, "How will Netflix continue to add subscribers?" fuels their concerns. To address these concerns, it is useful to examine the following categories:

1-Continue to Produce Great Content

Viewers are required to pay a monthly fee of $13,99 (US standard US package) to access a content pool valued at $ 26 billion. This year, Netflix content received 35 Oscar nominations, more than the total nominations given to Amazon and Walt Disney content, showing how good the company's content is. Focusing on delivering a great product should always remain the top priority. It is known by everyone that Netflix will increase its prices from time to time to offer this service. However, it is also observed that the participation increased and the loss of members decreased in the last quarter.

2-Continue to Grow in the International Market

In the first quarter, Netflix added 450,000 new customers in the US and Canadian market, but shareholder expectations are for the company to expand into overseas markets. The American market, which accounts for 64 % of current subscribers, is expected to change in the near future. The fact that India is one of the fastest growing video streaming platform markets presents a huge opportunity for the company. According to consulting firm Media Partners Asia, Netflix has around 5 million subscribers in India today. However, he states that this figure needs to be increased urgently.

WHAT SHOULD WE EXPECT FROM NETFLIX?

Co-founder and CEO Reed Hastings announced that Netflix will enter the South Asian market by leaps and bounds this year, with expectations in India of 100 million subscribers. There are now over 1,1 billion pay-TV households worldwide, and Netflix would have done a great job if it could even reach half that number.

3-Use Diversity

It's no longer a secret that Netflix wants to add a video game project to its ranks. Netflix plans to offer a game package service to its users in 2022, just like Apple Arcade. The transition to video games stands out as a positive development for investors. This has the potential to attract more consumers and become a lucrative second option for Netflix.

Conclusion

While Netflix remains highly innovative and pioneering, growth story is not over yet, It's the biggest response he can give to allay its shareholders' concerns. Engaging content, expanding overseas, and pursuing new revenue opportunities will push Netflix far beyond where it is in the next decade. WHAT SHOULD WE EXPECT FROM NETFLIX?  

Source: The Motley Fool

 

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