Despite the fact that you probably still use your roommate's account.
Netflix has officially crossed that inevitable landmark occasion that it’s been circling for the past couple of months now — the company is now valued at over $100 billion.
This increased growth is being weighed as better-than-expected, according to a report done by Tech Crunch. In simple terms, they’re far ahead of what was predicted for them on Wall Street, as they’ve said to bring in 8 million new subscribers in the fourth quarter of this year — despite the fact that they were only expecting 6.4.
With all these new subscribers, Netflix shares went up a whopping 10%, bring the market closer to $110 billion rather than $110.
“Netflix’s current growth profile suggests that it continues to accelerate away from competition, and that the power of its competitive advantages is growing,” Capital Markets’ Andy Hargreaves said via CNBC. “We believe Netflix’s global reach and data feedback loop provide leading investment efficiency, while its investment scale is growing at a level that others appear unable to match.”
The problem Netflix now is going to have to face is keeping those subscribers. While they’re currently dominating the streaming platform, Disney is cooking up a streaming service of their own that could potentially take subscribers away from Netflix.
Netflix and Wall Street (throw my name in there as well) believe that the way for Netflix to continue to be successful in these upcoming years is through their original content. Netflix originals like Stranger Things and American Vandal is one of the main attractions that other companies cannot offer.
“Driving more high quality content is a critical part of NFLX’s virtuous circle, and the mix will continue to shift toward originals & self-produced,” J.P. Morgan’s Doug Anmuth said via CNBC. “Netflix’s virtuous circle remains strong & the company continues to benefit from ongoing disruption of linear TV.”
However, Disney will likely be producing their own original content as well, which could potentially turn this all into a battle over quality. That means, despite the fact that a lot of people watched it, something like Bright could really be doing more harm than good — seeing how it got anywhere from disappointing to terrible reviews by nearly anyone who saw it (and that’s also the reason why they should go ahead and cancel that sequel).
Netflix, however, is in a good place for now. The company has recently announced that they plan to increase their spending budget from $7 billion to $8 billion.