Technology

Netflix, Inc. To Hit 70M Subscribers This Year [REPORT]

Netflix has been growing rapidly as its stock price nearly doubled in the last few months to touch new highs. However, of late, the stock has been losing steam, but the firm is still predicted to see a strong close to 2015 as it reaches almost 70 million subscribers.

Netflix, Inc. To Hit 70M Subscribers This Year [REPORT]

Global expansion pushing growth

Netflix is forecast to end 2015 with nearly 13 million additional subscribers after posting over 57 million subs in January, says a report by Digital TV Research. We can take a snap shot of Netflix’s growth just by considering that in the last three years the streaming firm has almost doubled its user base.

Undoubtedly, a major part of the Netflix’s growth has come from the global expansion. Netflix aims to spread its network to 200 countries by 2017. By the end of the year, the streaming firm is expected to gain more than 26 million international subscribers with a presence in 50 countries, including in Western European states like France, Germany and Norway along with Latin American countries like Brazil and Mexico, as well as Australia, New Zealand. The company is also considering Japan, India and China for further expansion.

Competition ahead for Netflix

Digital TV Research expects the U.S. firm to grow by 28% in 2015, including 57% international growth or 9.58 million international subscribers including 4.942 million in the UK, 3.95 million in Canada, 3.338 million in Brazil, and just under 2 million subscribers in Mexico, says a report by Advanced Television. Though the international numbers are relatively small when compared to the predicted domestic subscriber figure of 43 million, the global expansion has been impressive and is expected to continue.

Apart from Netflix, HBO and Amazon Instant Video services are also in the race to dominate streaming. Apart from its U.S. rivals, Chinese e-commerce sites such as Alibaba are also preparing to challenge Netflix in China. There will be some difficulties in the future, but Netflix understands how to compete in international markets, so a brighter future awaits.

Among the total analysts covering Netflix, three rate it a Sell, twenty-six consider it a Buy while thirteen say it is a Hold. Presently, the streaming firm has a consensus target price of $626.81. On Monday, Netflix shares closed down 0.92% at $645.62, and year to date, the stock is up over 88%.

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