Netflix, Inc. Remains A Solid Investment Opportunity Despite False Reports

Earlier this week, online entertainment streaming service giant Netflix was the subject of a report that claimed that the company was set to begin streaming every Disney title. The report, which turned out to be false, nonetheless spurred a small increase in stock price for the company.

False reports spur price increase

While this may have pleased Netflix customers with young children, it would have certainly created an oversupply of content. Additionally, the addition of every Disney title would have made the streaming service seem less consumer friendly. Adding such a large amount of third-party titles would have also undermined the company’s recent approach in consolidating existing content and focusing primarily on more original programming.

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Over the past few years, Netflix has seen competition increase with companies such as Amazon and Apple beginning to delve into the world of online entertainment streaming.

Netflix remains a great investment opportunity

Despite unfounded rumors, Netflix remains a great investment opportunity. The streaming giant has enormous potential to expand globally, as it is doing well across Europe despite tough competition from local firms. Latin America and South America also show promise for the company.

Now with over 80 million subscribers, Netflix can make a fortune by just raising the subscription price slightly. Additionally, the grace period for existing users that were grandfathered in at the $7.99 plan will expire on June 16, at which point the rate would increase to $9.99. This translates to close to one billion dollars in annual revenue.

Furthermore, Netflix’s massive investment in original programming is generating some very strong content which has in turn been met with high levels of praise. Likewise, the company’s recent deal with Disney, Pixar, and Marvel should give it a significant competitive advantage over the competition, even though it will not be streaming every Disney title, as the false report detailed.

While reports that Netflix would begin streaming every Disney title turned out to be false, the company remains a strong investment opportunity due to its massive international expansion, upcoming monthly rate hikes, and large investments in its own original content and programming.