Netflix is now worth more than every other media company in the US behind media giant Disney. Netflix ended 2017 with a 55% increase in stock price. The tech stock is a favorite among investment analyst and is predicted to continue outperforming in 2018. Revenue in the first nine months of 2017 rose by 32% to US$8.4 billion. It is said that this figure could easily increase in 2018 as the company has implemented measures to promote revenue. Netflix is trying to clamp down on password sharing in a drive to increase the number of subscribers they currently have to make more money. They are also trying to cut cost from airing paid licensed content and move more towards increasing its media library by 60% with original content in another 3 years.
Increasing original programming was a smart move for Netflix even though the media firm received back lash from the public about its massive spending in that regard. Netflix spent a whopping US$6 billion on original programing alone for 2017. However, the investment paid off as they won several Emmy awards for shows such as Stranger Things, House of Cards and The Crown.
The move to increase Netflix owned movies and series was most deeply appreciated by subscribers as subscription rose by 10% to US$51.3 million. Total subscription for 2017 ended with 115.7 million global subscribers, a 23.3% increase from 2016. It is obvious viewers welcome the changes and will continue to support Netflix as they transform the way people view TV. The current market price for Netflix is $201.7; a good buy for any investor as there is a strong possibility the stock price will increase in 2018.
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