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Netflix Surpasses 50 Million Members


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Netflix has announced on Monday that the company has now surpassed 50 million subscribers. Their customers are in over 40 different countries, 36 million of the 50 million customers are in the United States. With share prices that closed at $451.95 yesterday, the company has been slowly rising in overall monetary value as the video streaming company has been doing better since the lag in growth during the second quarter. The company continues to see success in its ventures because it is offering a superior service over its counterparts in the premium cable sector.

Netflix’s Performancenetflix 1

The company’s performance slowed a bit during the second quarter. Only adding 570,000 new streaming subscribers which when compared to the same time last year, when the company was able to add 630,000 new subscribers a year ago. Well over 2.25 million new subscribers were added in the first quarter of last year. In May subscription prices were raised by only one dollar for new members and Netflix leadership stated that the minimal hike in prices had little effect in impacting user growth.

In an effort to boost users, the company has continued to push its own products and original programming. With shows like Orange is The New Black, which had launched its second season in June, The final and fourth season of The Killings is due to premier on August 1st, and Hemlock Grove which had launched in early July. The company’s shows acquired 31 Emmy nominations last year.

Netflix has announced that it currently has a few new shows already in production. Such titles as Sense8 which is going to be a new shows from the directors of Matrix and Marvel’s Daredevil which has the company in a partnership with Marvel Television. The company had made waves in June when they announced that Netflix will be producing a less scripted talk show with comedian Chelsea Handler. Analysts on Monday afternoon, had said that the reason for a shift in focus was the company reacting to what viewers are now looking for when it comes to talk shows. Netflix’s chief officer of content Ted Sarandos has stated of consumers that “They’re not watching them at 11:30 — they’re watching them days, weeks, sometimes months later online…What we’re hoping to do with Chelsea and her team is create a show that’s built closer to the way people are going to watch it.”

How Netflix Grows Revenuenetflix 2

In recent quarters, Netflix has been growing their business. The company had for the first time in their history last year hit 1 billion dollars in profit. And in the second quarter, Netflix had announced that they had hit 1.3 billion dollars in profit which was directly in line with what analysts were projecting for the company. The share prices rose slightly before the markets closed, yesterday. The company has announced plans for continuing to grow the business beyond just the US market. The company is going to begin investing further into Europe and begin widening the basis of their customer users. Netflix has announced that they will be expanding their launch in September of this year into countries like Germany, Austria, France, Luxembourg, Belgium, and Switzerland. The company has stated that by growing their international side of the business, the company will be able to gain the profit margins that have been solely based on the US market.

Netflix has gone as far to say that the success for other online companies, can be found in how consumers are looking to interact with their shopping and entertainment experiences. Like Amazon, Netflix has announced that later in the year the company will be selling gift cards in retail outlet stores. The introduction of the selling of gift cards is to appease those consumers that enjoy watching movies online. This is for the users that enjoy shopping online for the programs that they can watch either immediately or later on after their purchase. The company has also maintained a low monthly rate that competitively combats the cost of having premium cable each month.

Netflix is quite well in its efforts to maintain subscribers for using their online video streaming. By continuing to offer original programming and effectively focusing in on the needs and desires of the consumer base, the company continues to do well financially as it progresses into the future. Netflix maintains a level of success in part due the ease of access to their original programming as well as the TV shows offered by other networks and movies for a low monthly cost. The other part that is critical to Netflix’s success is that the company has effectively been able to continue building a steady consumer base which has helped the company to grow. As Netflix grows so too does their profit margin and the ability for the service provided because of the funding flowing into the company.

 

 

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