Netflix set to be second only to Disney by 2023
Netflix established itself in the UK, the world's 5th largest media market, in 2012. It was revealed today through a survey by the Broadcaster’s Audience Research Board that 7.5million UK households now subscribe to Netflix, as of the third quarter of 2017. This outstrips the company’s nearest rival, Amazon, by some margin, with Amazon’s Prime service being purchased by the comparatively small number of 3.84million consumers.
Meanwhile across the Atlantic Barclays’ analyst Kannan Venkateshwar suggested that Netflix could become the worlds second biggest media company by revenue and predicting it will see a rise in annual sales growth of 27% between 2016 and 2019.
Netflix, which is predicted to spend close to $12billion on content in the coming year, has approximately 5800 titles on its streaming services.
"Netflix bull case at the core is relatively simple — if subscriber growth is faster than content cost growth over time, it could become one of the most successful media companies. We believe this is possible."
"Our view is supported by Netflix's global footprint and access to ~550mm broadband subs, demonstrated pricing power, growing content library, changing mix towards local content, and its increasing 'stickiness' due to multiple seasons of established originals." "Inertia tends to benefit early movers and market leaders and is likely to help pricing growth and costs to potentially drive margin expansion over time," he wrote. "In our opinion, in the next 3-5 years Netflix is likely to become the second biggest media company by revenue (ignoring studios and theme parks), next only to Disney." said Mr Venkateshwar.
January is also when Netflix refreshes it’s library retiring or bringing back old shows and giving us an idea of what new acquisitions and originals will be coming our way, with notable classics such as The Godfather Trilogy, the Lethal Weapon series, The Shawshank Redemption, and The Italian Job being added in the UK this month.
Dominion holds Netflix in its Global Trends Ecommerce Fund
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.