rtmark
LearnBonds.com

Netflix, Inc. (NASDAQ:NFLX) Adds Hong Kong, Taiwan, Singapore: Analysts Love it!

Netflix Inc (NASDAQ:NFLX)

Netflix Inc. is in the news again this morning as the firm gave an update about its global expansion plans. Bloomberg reports that Netflix posted a statement about its plans to enter Hong Kong, Taiwan, Singapore and South Korea early in 2016. The move is in line with Netflix’s previous push to unlock growth in international markets while it continues to dominate the streaming market in the U.S. Analysts are positive that Netflix’s plan to pursue growth in the global market even before the U.S. markets starts to mature will pay huge dividends in the long term.

Netflix Inc (NASDAQ:NFLX)

Netflix’s entry into Hong Kong, Taiwan, Singapore and South Korea will have the firm launching its service with a mix of movies, TV shows, and kid-friendly programming. It plans to debut the local subtitles of many of the content has are popular in the west, but plans to start making licensed and original local contents are underway. More so, details about pricing will be released when the time for the official launch in near.

Global expansion is the key to Netflix survival

Netflix is the biggest video streaming service in the U.S. A report released by Neilsen in 2013 shows that Netflix controls 38% of the U.S. streaming market, Hulu controls 18% of the market, and Amazon Instant Video holds 13% of the market. Netflix’s market lead in the streaming space has given its stock the wings to fly. For instance, the stock has gained almost 95% in the year-to-date as it holds a 52-week trading low of $45.08 and a 52-Week trading high of $129.29. In fact, the stock has been named as the top performer in the S&P 500 this year.

However, the stock has had a rough patch in recent times as increased competition threatens its market lead. In recent times, there has been increased competition for streaming dollars in the U.S. as rivals such as Hulu and Amazon start to match Netflix in the quality of their services. More so, Apple is reportedly planning to enter the streaming space as it launches a new Apple TV today.

Netflix however, is responding to the scramble for U.S. markets by blazing new frontiers in international markets. In June, Netflix started pushing into Latin America with deals for Spanish contents. The firm is beating local rivals in Australia, its service has a warm reception in the UK and the firm has even raised HD costs in the UK.

Asia is key to Netflix growth

Asia is key for Netflix because it provides an untapped fertile ground for growth. Many countries in Asia already have the broadband infrastructure that supports video streaming. In addition, they have growing economies in which people can afford to pay for streaming services.

Netflix is having talks with Chinese online broadcasting companies about entering the Chinese market – but China might be a hard nut to crack. Last week, the firm announced that it has entered Japan. A good point to note is that analysts are have raised their price targets on the stock because of the upside potential in Asia.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

X

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

TRADE WITH ETORO

75% of investors lose money when trading CFDs.

Leading Social Trading Platform with 0% Commission
TRADE WITH ETORO

75% of investors lose money when trading CFDs.

HTML Snippets Powered By : XYZScripts.com