Netflix Forecast to Stay on Top
Netflix to stay on top despite fierce competition, UBS has claimed.
20:16 21 January 2018
A UBS analyst is confident that Netflix will stay ahead of its competition because it is the leader of innovation, content and technology. Eric Sheridan added that the firm’s enormous funding to provide its subscribers with original content along with its loyal fan base and subscriber growth will likely to sustain the company’s growth trajectory.
“We believe Netflix will likely remain the leader due to its scale, excellent execution, brand, proven technology & content expertise, singular product focus, and lead in building its own exclusive original content library," Sheridan said.
The firm’s number of subscribers continued to grow despite the company’s decision in October to increase subscription prices. Sheridan said that this “can be viewed as supportive of the platform’s pricing power.”
He also pointed out the firm’s original content, particularly the widely popular "Stranger Things" and "13 Reasons Why." Spending on original content can bring in more subscribers and position "Netflix to sustain its clear global leadership in the emerging online video subscription business."
Macquarie analyst Tim Nollen agrees saying that Netflix is “miles ahead of its peers” especially because it offers scaled distribution with a growing international presence.
The company’s stock is up by 8.58per cent this year and is currently at $218.28 per share.
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