A research on the recent expansion of Netflix has given positive signs for the growth of the entertainment company. The count of Netflix users is believed to rise up to 262 million really soon, which is, of course, a big jump than the current 118 million subscribers for the channel.
"At a high level, our $305 price target implies that in ten years Netflix has 262 million total subs (representing 72% U.S. penetration, 37% penetration of other developed markets, and 21% penetration of emerging markets ex-China)," quoted analysts Mark May and Hao Yan.
Netflix, being an entertainment company at its core is currently having a global business nearly to $1.36 billion, which is a reason for its exceptional growth in all these years. Netflix expanded its business with the introduction of streaming media that played the pivotal role in bringing the blazing revenue for the channel. The quality of videos along with the streaming pace is quite excellent, which is a reason why more and more users are signing up for the services.
Netflix is growing for sure but to add the desired pace, the company must stream quality content aggressively. The quality of videos must remain exceptional to keep users hooked on their places for long hours. The cost acquisition is sure to rise but it must create a perfect balance between the quality and the content that is served to the users through the channel.
Citi as per its estimation on Netflix has predicted that the channel will spend $14.7 billion in 2018, $16.5 billion in 2019, and $17.5 billion in 2020 to acquire and develop new shows and movies. The content acquisition budget is thus expected to hit almost $20 billion in 2028.
The addition of new subscribers to Netflix list is again a parameter for more cash flow in the company. Addition of new subscribers is an added benefit. Netflix is sure to reach $3 billion in cash flow deficits this year, and the prediction for next year is over $2 billion. Additionally, the company is expected to have some positive cash flow of $4 billion by 2022 and $6.3 billion in 2023 that will further rise to $8.7 billion by 2024.
Being a Senior Technical Writer at MobileAppDaily, Neha Baluni loves jotting down her piece of opinion for the advancing technology in mobile app world. Having a journalism background, she is a writer by day and a reader by night. Her passion for writing covers different categories of technical and non-technical genre. In addition to writing, Neha loves traveling a lot.Follow
From leading business houses to budding startups, everyone can bank on us for all their future insights.A look at our mighty stats is a proof enough of our intentions to drive emerging advancements in the mobile industry and reinventing digital media in every possible way JOIN US!