NFLX Journey To New Markets

Netflix, Inc. is a provider of Internet television network. The Company has over 57 million streaming members in over 50 countries. Its members can watch more than two billion hours of television (TV) shows and movies per month, including original series, documentaries and feature films on Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD.

I Know First also wrote two articles about Netflix. The first Article was written on Nov 11th, after that T-Mobile announced that they are the first major U.S. carrier to offer unlimited video streaming from Netflix to mobile device users. Since that time, the stock price has increased 16%. The Second was an article on Jan 9th, after their expansion in European markets and new, attractive original content means Netflix stock is poised to make a strong recovery by the end of the year. Since that time, the stock price has increased 174%, as the article correctly predicted.

Shares of streaming video company has had another excellent year in 2015. The stock hit a new all-time high of $132.20 last week. Their market cap has gone up from around $20 billion in January to an impressive $56 billion today.

Today, Netflix has an extremely high valuation even by its own standards. It currently trades for about 500 times forward earnings, up from roughly 50 times forward earnings in early 2013.

In 2016, the company will likely enter India and China in a bid to widen its user base while opening different business avenues. The Chief Content Officer stated that he expects the total number of Netflix’s original series to grow from 16 to 31 next year.

The real-time entertainment category has a 70% share of Fixed Access or home broadband Internet usage in North America. This statistic was 35% five years back, according to Sandvine. This sudden rise in the consumption of streaming video and audio can be attributed to Netflix, YouTube, and even Amazon Video. Netflix accounts for 37% of home broadband peak period Internet consumption with YouTube at a respectable second position with 17% traffic share. Amazon trails behind with 3% traffic share.