Will Netflix Struggle In 2014?

January 12, 2014 in Daily Bulletin

John McDuling writes that 2014 could be a tough year for Netflix:

  • A-la-carts movie services where people pay to stream individual movies have a much wider selection than Netflix.
  • Netflix is responding to this by producing its own original content, and may even produce its own movie. However original content is a risks business.
  • The company’s share price surged in 2014 and this may mean that film studios try to charge more for the rights to stream their films.
  • Its growth prospects overseas are limited. It has spread to most of the English-speaking world, and many countries don’t have fast enough broadband internet connections.
  • Netflix does appear to be trying to milk its existing users for more revenue by taking steps like cracking down on freeloaders.

Read more about why Netflix abandoned its “poison-pill” defense, what celebrity investor Carl Icahn has done, and more over here.

Source: Quartz