Netflix Inc. is the online streaming giant in the industry which has ruled over the sector for a very long time now. Ever since its inception, the company has been successful and doing more business in almost 80 countries or more when compared to the new or established players in the online internet TV or cable television provider. In recent years, due to its vigorous expansion plans, the company has immensely grown and has now more than 70 million subscribers throughout the world. And the CEO of the company has explained the reason behind all this success.
No doubt in the fact that Netflix is really a huge company which is now dominating the entertainment sector. And the CEO of the company, Reed Hastings, stated that his successful company will keep on growing and expanding throughout the world to be more productive. His reason is simple that the streaming service provider is ruling over the world therefore to be precise Netflix is a better product and provides a better experience to the viewers than other online video content service provider or traditional TV.
Reed Hastings came up with this explanation during the earnings call at the company after an analyst questioned regarding the plans of the company and its growth. Regardless of the fact that the CEO believes its company is growing, it failed to meet analysts’ expectation in the third quarter of the fiscal year 2015, that too in its own home. No one expected Netflix to not perform well in the United States however it did not even surpass last year’s third quarter results.
This is a matter of concern for shareholders and investors but the company stated that it will finish the year on a high for sure. Analysts expected NFLX to add at least 1.2 million subscribers up till now however it only managed to add 880,000 subscribers. Last year’s numbers were 980,000 more subscribers.
According to Reed Hastings, “It's fundamentally that internet TV is better than linear TV. Consumers can watch when they want. On what type of device they want, and the content has just got better and better. So the fundamental confidence about the large scale is because on-demand is a better experience than linear, and the entire market is going to move from linear to on-demand internet television over the next 10 to 20 years.”
Netflix is successful but will have to change strategies to come back its lost market share in the United States.