The demographic trends affecting the sale of Netflix are phenomenal as this discussion will tend to prove.
Netflix was founded in California USA as a small DVD mail service delivery specializing in the business of media streaming and offering videos on demand. As of the year 2013 Netflix made available approximately sixteen parts of the program arrested development with about 10% of the subscribers watched the whole program(season) in just twenty-four hours. It’s been noted that quite a number of Netflix viewers who are aged between 18 and 34 years watch episodes on Netflix back to back. Netflix has provided an opportunity to binge viewing, unlike the mainstream TV viewing that program episodes on a weekly or monthly basis. In 2013 Netflix ignored Gender, Age, and Geography and advertised the episodes of anarchy depending on the interest shown by the viewers (McNutt, 2013)
By June 2017 the Netflix had more than 100 million viewers and half of these viewers are in the US. While the rest are distributed worldwide.Among the best markets for the company are found in Brazil, Mexico, and Argentina.
The watchers are also provided a platform by social media to share reviews and experiences with others increasing interest in using the service. According to a research done by E-poll market research, it was found that in the US, Netflix was leading in streaming programming for all demographic groups and that Netflix proved to be more popular than their competitors by 200% (Parker,2016). This major trend has been attributed to the viewers responding to the survey as shown: Fifty-five percent said that viewer’s interest is catered for, while fifty-one percent liked binge-watching and finally sixty-nine percent said they wanted to avoid commercials (Parker, 2016). By the year 2016,Netflix penetrated the market in 130 nations and used one predictive algorithm worldwide to sell its product and did not use gender, geography or demography as VP of product Todd Yellin claims. He is insisting that knowing about similar individuals in completely different gender or age or geography helps them to sell more than tradition profiling methods (Morris, 2016).As of March 2018, Netflix had a total of 117 million subscribers worldwide and reached approximately 300 million people throughout the world (Smith 2018). It is estimated that 62.83 million viewers are international subscribers and 53 million users are outside the US as of February 2018.
The current economic trends affecting the sale of Netflix are very encouraging for the company as it has grown tremendously although its costs are too high. The cash costs of Netflix’s streaming programming reached 8.9 billion dollars in 2017 which is about two times more than what was spent two years earlier (Ovide, S (2018).Netflix also claimed its predicted cash flow was to increase by a margin of – 4 billion US dollars in 2018 as compared with – 2 billion US dollars in 2017.Netflix bonds due in 2026 have been trading slightly below 100 dollars and they have been going up steadily. According to Williams Netflix share rose by 13% in January 2018 which satisfied Wall Street and subscriber growth market share that allowed that to happen.
It is estimated that in 2017 the total revenue for Netflix was 11 billion US dollars and it is expected to increase to 15 billion US dollars by the end of 2018(Smith, 2018) Netflix company worth is estimated to be 130 billion dollars by February 2018.In 2017 the company had planned to spend 6 billion US dollars on original content (Smith, 2018).It is therefore apparent that Netflix growth will continue steadily going by the wall street figures and the value of its shares. Costs management and financial borrowing is a concern as expressed by financial critics.
References
Parker, R (2016) E-poll market research Netflix is now preferred TV viewing for all demographic groups, PRNewswire, L.A. retrieved from, https://www.prnewswire.com/news-releases/netflix-is-now-preferred-tv-viewing-source-for-all-demographic-groups-300270704.html m:
Smith, G( 2018) DMR BUSINESS STATISTICS/FUN GADGETS,110 Amazing Netflix statistics and facts(March 2018)Retrieved from ,https://expandedramblings.com/index.php/netflix_statistics-facts/
Morris, D, Z (2016) FORTUNE, Netflix says Geography, Age, and Gender are ‘garbage’ for predicting taste retrieved from http://fortune.com/2016/03/27/netflix-predicts-taste/
McNutt, M (2013) Cultural learnings, Demographics of anarchy: Netflix, Afterword, and Gender retrieved from https://cultural-learnings.com/2013/09/11/demographics-of-anarchy-netflix-afterword-and-gender/
Ovide, S(2018) BLOOMBERG GADFLY Netflix’s Growth is in the Eye of the Beholder retrieved from https://www.bloomberg.com/gadfly/articles/2018-01-22/netflix-earnings-growth-is-in-the-eye-of-the-beholder.
Williams, T (2018) Market watch, Netflix analysts continue to focus on growth, overlook cash flow.NY retrieved from, https://www.marketwatch.com/story/netflix-analysts-continue-to-focus-on-growth-overlook-cash-flow-2018-01-23
