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Netflix, Inc. (NASDAQ:NFLX) Heats Up the Streaming Competition

netflix inc nflx

Netflix, Inc. (NASDAQ: NFLX) appears to be rolling out one new series after another. Shortly after announcing that the new ‘#Girlboss’ series will (for now) have the same director as the one for ‘How to be single’, a short trailer has been released for the upcoming ‘Fuller house’ series. The latter is going to debut on February 26.

Netflix, Inc. Shares Rise by Nearly 5%

In the last trading session, Netflix made up for most of Friday’s losses. It reached a high of $88.4 before closing below $87. The next quarterly earnings are expected to be announced on April 20. In Q4 of CY15, Netflix delivered an EPS of $0.07, which was slightly below expectations. Sell-side groups are estimating the stock will reach $128.525 over the next 13 months. Over the last one month, the stock had a more or less downward trend. In fact, since the beginning of FY16, the stock has lost about a fourth of its value. This is in part because of slowing domestic growth. What is particularly worrying is that many of the next markets where Netflix will make an entry are known to be hotbeds of piracy. This will naturally limit the revenue from such markets. However, Netflix does seem to be making a dent in the revenues of traditional media and entertainment firms such as ESPN and Walt Disney. As far as ESPN is concerned, investors are worried more about the sustainability of the revenue than in the numbers themselves. Competition is being given not just by Netflix but also other rivals such as Hulu. These new-age rivals are seen to be ‘disruptors’ in the world of delivering media. It has already made a mark in the earnings that were recently disclosed by another media giant, Viacom.

Tackling Copyright Issues Arising due to VPN

VPN, or virtual private networks provide a degree of anonymity to the user and help bypass certain geographical restrictions. This has been known to be misused for bypassing limits on the distribution of content. For instance, using VPN, many users outside the USA have been consuming content that was originally intended to be sold within the USA only. It is known that Netflix has a large library of content for the US market. As someone involved in media delivery, bypassing such restrictions naturally creates legal trouble for Netflix. Surprisingly, Paypal has come to the rescue. It has announced that it will stop accepting payments for such VPN providers. This will eventually prevent users from bypassing these restrictions.The restrictions are in place not because Netflix had any intention to limit access to the content but because licensing agreements with content creators prohibit the delivery of such content in markets other than those explicitly listed. This move by Paypal will certainly give a shot in the arm to Netflix. The latter has been trying since a long time to prevent users from accessing the content using proxies. For instance, it has attempted to block certain content in Australia. Uno Telly, which is a Canadian VPN service, is believed to have been already contacted by Paypal.

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Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.

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