Netflix, an American entertainment company is on the verge of hitting 100 million subscribers, an evidence to how much the video streaming service has differed the entertainment landscape from the time it was introduced. The company will reach that level this weekend if its estimations are correct. Netflix forecasted on Monday that its service added nearly 5 million subscribers during the first quarter of the year and will reach up to 98.7 million customers until March in around 190 countries.
People were able to watch videos everywhere on their smartphones and tablets, said Michael Pachter Wedbush Securities analyst. “But Netflix clearly had a vision before those devices became so ubiquitous.” Netflix has 51 million subscribers in the US and around 48 million subscribers outside the US until March. The company has done a good progress over the past five years. In these years, Netflix has added 72 million more subscribers.
Los Gatos, the company in California has a current market value as $US63 billion. In today’s time, its stock has increased from $US1.90 to $149.15. For all its success, Netflix still has ways to go before it catches up with HBO, an American premium cable and satellite television network that has served as its role model. All over the world, HBO has around 134 million subscribers and provides the internet-only option. Other cable channels are also offering internet-only options as more viewers avoid other traditional TV packages and get a subscription for streaming services.
Pachter along with the other analyst are thinking for how much time Netflix will be able to hold the line on price as movie and TV studios typically demand more money as more people subscribe to channels. This year, Netflix thinks it will spend about $6 billion on programming. Analysts found that Los Gatos earned $178 million on revenue of $2.6 billion in the first three months but Netflix will make $482 million on revenue of more than $11 billion for the entire year.