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The perfect time for Netflix to chill


ANIMESH SRIVASTAVA 23/01/2018 15:58:12
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23-01-2018160909pAUYjFc4P31   

Washington, Jan 23: Entertainment site Netflix has garnered about 6.3 million subscribers in international market during Oct-Dec after releasing the new seasons of “Stranger Things” and "The Crown” which is a great growth rate for the company.   

   Surpassed the forecasted demand

Netflix attracted 2 million more subscribers than the demand forecasted by The Wall Street. By the number of increased subscribers, their profits are skyrocketing which they’re planning to spend on their content to create monopoly in the entertainment industry.

A growth rate of nine percent was witnessed on Monday.

Subscription price was hiked in October, but surprisingly it added approximately 1.98 million customers only in the US. There were 117.58 million streaming subscribers across the globe in the end of 2017 and it recorded it’s full year profit in the international market.

   Future plans

In the starting phase, it was a DVD by mail service which later turned into a huge entertainment portal because of it’s quality content and providing a platform to new people. Netflix is planning to spend up to 80 billion on TV shows and movies to give a tough competition to the competitors. They license their own shows in case the production studio calls off the deal.

The marketing budget is more than the revenue generated which results in negative cash flows, and apparently they are not scared to burn a hole in their pocket as they believe that their content will finally pay off all it’s negative earnings. The best example of this is Will Smith starred Bright whose budget was around $90 million.

Netflix is aiming to add around 6.35 million customers for the first quarter while analysts are predicting 5.01 million customers.

Investors are confident with the growth rate of Netflix as the reports are positive.

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