2018 has been very kind to Netflix. Netflix has been in the news daily and, for the most part, its all been really good. Their stock is up roughly 80% in the last three months alone. That is beyond “wow” and impressive for a major player in the stock market. Its impressive for any company, but virtually unheard of for a company of Netflix’s stature and already existing market cap. They are worth as of Friday, March 9th a total of 143.83 BILLION. Netflix isn’t some little known company that is finally picking up a chunk of the industry, but a major player that has become such a huge name and of importance to the stock market that it is one of the “FANG” stocks. FANG is made up of Facebook, Amazon, Netflix, and Google. That is pretty good company to be with. The importance of those four stocks in the stock market can not be understated, as they single-handedly influence the overall market. Netflix has more subscribers than any other player in the market, and by a lot. They have roughly two-thirds of the digital U.S. video viewership. They have more subscribers than Amazon Video and Hulu combined, as well as cable TV.
So what has led this company to be so successful and become a household name around the world? Netflix does many things well. Here are some:
- Netflix continually rolls out quality content, leading to continual subscriber growth. Netflix works tirelessly to ensure those subscribers experience and enjoy high-quality viewing experiences of whatever they are watching.
- Netflix’s obsession with original programming continues to reward them big time as they produce content that is highly sought after and enjoyed This content capitalizes on their competitive advantage of being the only platform where viewers can go to watch that content.
- Netflix capitalizes on social media. Jefferies analyst, John Janedis on CNBC states that: new Netflix original shows generated an average of 30 percent more mentions on Twitter when compared with new shows on network or cable television.
- Their platform caters to the user. Ease of use, design, and simplicity all make for a great user experience.
Netflix’s business model has taken the world by storm and their continual success speaks to the amount of innovation and ingenuity that has reshaped the business world and how users watch content. Their continual focus on building long-term relationships with their subscribers will only continue to pay dividends for them.