Where Will Netflix Be in 10 Years?
Netflix (NASDAQ: NFLX) likely has a big 10 years ahead of it, thanks to massive global subscriber growth, price increases, and increasing profit margins. Here's why.
Netflix already has a massive global subscriber base. The company ended March with an astounding 183 million global paid subscribers, which grew 23% over the last year and 9% just from the end of December. The company's been on a tear because it's continuously reinvesting its growing resources in more and more content, which further fuels the subscriber flywheel.
Predicting the future is hard, but Netflix's future as the streaming video on-demand ("SVOD") king is virtually assured. That's because no other SVOD service has anywhere near Netflix's $15 billion content budget to pose a serious threat. And no other service can justify having a Netflix-like content budget without first having the subscribers to support such a budget. It's a classic chicken-or-the-egg problem.
Source Fool.com
