The bullish news on Netflix continues to flow in, this time courtesy of BTIG Research analyst Richard Greenfield, who expects Netflix to add 20 million global streaming subscribers this year.
Greenfield thinks Netflix has a good chance to hit upwards of 150 million subscribers if it is able to have a healthy launch in China. The analyst believes that Netflix’s original content push coupled with continued licensed content from studios will continue to build momentum. Said Greenfield:
“We believe the cadence and consumer appeal of Netflix’s original/licensed content is leading to greater-than-expected global net subscriber additions,”
Greenfield also thinks that consumers defecting from the restrictive and expensive bundles foisted on them by cable TV providers will also fuel Netflix’s growth:
“As the bundle comes under increasing pressure, it frees up more and more consumer dollars to spend on Netflix and other SVOD services,”
20 million subscriber adds in one year is pretty audacious. Do you think Netflix is up to the challenge, Insiders?
So why do they need to increase the price?
To get all the rights to the Movies & TV shows..They are charging more for the rights… And to pay for Netflix’s own stuff.
20 million new subscribers all paying an extra $2 – 40 million dollars.
Hold it they’d be paying that anyway – look at the existing subscribers, about 130 million – let’s say 100 million are grandfathered and will see their price go up $2 – that’s $200 million more each month. If they dump some of that back into content maybe they’ll keep all 130,000,000
Your Numbers are totally made up in your head. First of all, there are nowhere near 130 million subscribers WORLDWIDE. Second, Netflix has already stated that the price increase will only affect approximately 17 million subscribers that were grandfathered in for 2 years when they raised prices on new subscribers.
The big question is – What percentage of those 17 million subscribers will cancel their subscription? Time will tell.
You are so right. Time will tell. But I think about 90% will keep Netflix with the two buck price hike. When you think about what you are getting for $10.00 bucks.. It’s a good deal..
I have Netflix,HBO Now.ShowTime, Warner Archives, & CBS All Access.
I have them all going from my Roku 3 to my TV. And everything comes in just great. No jumps, no stop & go bit.. Everything plays great.. Even with Netflix going up a few bucks.. It’s still worth the money..
You really can’t beat it..