Netflix Inc.

Netflix is taking advantage of its global reach to capture the increasing number of global SVOD subscribers and share of revenue. It has a 32% and 24% compound annual revenue and subscriber growth rate over the past three years, respectively, supported by subscriber growth in international markets where penetration rates are lower than in the U.S. and price increases in more mature markets. We believe Netflix should continue to benefit in both areas over the next few years even as SVOD competition increases in the U.S. with several new launches coming in 2020. However, more choices and the potential loss of licensed content from legacy studios could lead to more churn and dampen domestic subscriber growth. Nevertheless, Netflix benefits from

...Netflix is the largest global SVOD service provider with increasing revenues and a large and expanding subscriber base. Netflix Inc. has 167 million paying subscribers. Among its SVOD competitors, only Amazon Prime has a global platform, while Disney Plus has expanded rapidly in the U.S. and is beginning to move into markets outside the U.S. Most other providers are still trying to achieve scale in local markets before expanding internationally. Netflix's global platform allows it to leverage content investments across its subscriber base, effectively reducing cost per subscriber for each individual content investment. Netflix is taking advantage of its global reach to capture the increasing number of global SVOD subscribers and share of revenue. It has a 32% and 24% compound annual revenue and subscriber growth rate over the past three years, respectively, supported by subscriber growth in international markets where penetration rates are lower than in the U.S. and price increases in more...

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