{"id":35466,"date":"2017-07-19T05:27:43","date_gmt":"2017-07-19T05:27:43","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=35466"},"modified":"2017-07-19T05:27:43","modified_gmt":"2017-07-19T05:27:43","slug":"netflix-wins-international-crown-with-original-shows","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/lifestyle\/netflix-wins-international-crown-with-original-shows.html","title":{"rendered":"Netflix wins international Crown with original shows"},"content":{"rendered":"

Netflix wins international Crown with original shows<\/span><\/strong><\/span><\/h2>\n

Twenty years after Reed Hastings co-founded Netflix Inc (NFLX.O), and a decade after the company introduced video streaming, it hit another milestone – one that is key to its ability to sustain its scorching pace of growth.<\/span><\/p>\n

International subscriber count increased 8.6 percent to 52.03 million at the end of the June quarter, eclipsing domestic customer numbers of 51.92 million, Netflix said on Monday.<\/span><\/p>\n

The company’s shares jumped as much as 9.7 percent to a record high of $177.44 on Tuesday, on track to add roughly $7 billion to Netflix’s $70 billion market value.<\/span><\/p>\n

Betting on original shows puts Netflix in pole position to win over more millennials who are shunning traditional television, analysts said.<\/span><\/p>\n

Netflix has a new-found ally as well: pay-TV platforms.<\/span><\/p>\n

Several companies such as Comcast Corp (CMCSA.O), Virgin Media in UK, and Altice in France are bundling Netflix into their pay-TV offerings, which could rapidly ramp up viewer numbers in younger markets, Morgan Stanley analysts wrote.<\/span><\/p>\n

At least 17 brokerages raised their price targets on Netflix. Morgan Stanley and JP Morgan were the most bullish, each raising their target to $210.<\/span><\/p>\n

The median price target is $192.50.<\/span><\/p>\n

“We believe the rapidly growing content offering led by originals, that in aggregate garnered 91 Emmy nominations last week, drove the stronger new sign-ups,” Morgan Stanley analysts wrote in a research note.<\/span><\/p>\n

This year, original TV shows including “Stranger Things”, “The Crown” and the latest season of Kevin Spacey-starrer “House of Cards” brought in more customers than Netflix had predicted for the second quarter.<\/span><\/p>\n

Netflix has a long way to go to get more content to please more members, Hastings said on a conference call on Monday, adding that positive returns made him comfortable that the company should continue to invest in original shows.<\/span><\/p>\n

The company has often been criticized for spending too much on content. It said earlier it planned to spend about $6 billion this year for original shows and expected to have negative free cash flow of $2 billion to $2.5 billion.<\/span><\/p>\n

While most analysts backed the company’s strategy favoring scale over profit, a few disagreed.<\/span><\/p>\n

“We think that Netflix is destined to be a cash burning high growth company until it changes its strategy and accepts its fate as a highly profitable slow growth company,” said Wedbush analyst Michael Pachter, a long-time critic of the company.<\/span><\/p>\n

He has an “underperform” rating and a $82 price target.<\/span><\/p>\n

source:-http:\/\/www.reuters.com\/article\/us-netflix-results-research-idUSKBN1A316M<\/span><\/p>\n

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