Why Netflix Hasn’t Peaked Yet – Despite Lackluster Subscriber Growth

Is this the peak for Netflix? The company is at 195 million subscribers and counting but some question whether its dominance over the streaming landscape has crested. To most analysts, the answer is a firm “no,” even after Netflix fell short of both Wall Street’s and its own Q3 subscriber estimates recently. The belief is that thanks to Netflix’s mountain of original content, first-mover advantage, and emphasis on growth outside the U.S., it’ll continue to lead the pack for years to come. Netflix “has invested billions in producing original content and licensing Netflix exclusive content, which makes up as much as 40% of its content hours in some markets, and is expected to increase its investment in originals fourfold by 2025,” Ampere Analysis analyst Tony Maroulis said. Those originals — from “Tiger King” to “Stranger Things” to “Ozark” — have helped set Netflix apart, Maroulis said, and will continue to keep subscribers locked into their monthly payments. Perhaps even scarier for its competitors, Netflix may get better at producing content its viewers want in the years ahead. “The head start that Netflix has on its competition means that it has a treasure trove of data,” Maroulis added. “It understands better than...

Read original story Why Netflix Hasn’t Peaked Yet – Despite Lackluster Subscriber Growth At TheWrap