Netflix, Inc. Global Subs To Be More Profitable Than US [REPORT]

Netflix, Inc. Global Subs To Be More Profitable Than US [REPORT]
NFLX Photo by Matt Perreault

Netflix’s international subscribers are expected to have “2-3x faster profit trajectories” than the streaming firm’s U.S. subscribers, believes Needham & Co. analyst Laura Martin. The research firm reiterated its Buy rating on the U.S. firm and raised its price target from $600 to $780.

More monetization from global subscribers

“Offshore, we believe that NFLX’s international subscribers have 2-3x faster profit trajectories than in the US, suggesting higher ROICs, and therefore higher lifetime value per subscriber than US subscribers,” stated Martin. Netflix is buying content across the globe, which would help it in creating higher barriers to entry, and relatively lower costs compared to the competitors. Also the analyst believes that going forward, the streaming firm could add advertising revenue.

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