Netflix Inc.’s Stock and the impact rivals have on it

The streaming service is more affected by its competitors than it thinks. Two most prominent competitors in the market being Amazon and Apple Inc.

Netflix Inc. was the best performing company on the S&P 500 Index last year as it managed to outperform the index by almost 76% however in terms of year-to-date (YTD) performance; the stock of the steaming media giant is down by as much as 10.6%. It has been observed that big announcements by the streaming media’s competitors usually have a significant effect on Netflix stock.

However, it should be noted that to make a substantial effect on the stock of the streaming media company, its competitor should be prominent in the market. There is a long list of Netflix’s competitors both in the domestic as well as the international markets but the streaming media leader has managed to stay on top of its game up till now. The question now is how long will it managed to keep the throne?

The first competitor that has a significant effect on the video streaming media is Amazon.com’s Amazon Prime Service. It is one of the biggest threats in the market for Netflix. As both the companies are more or less providing similar content, it has become quite hard for the customers to set their minds on one service. Presently, Netflix’s market share in the market is up to 36% while Amazon Prime’s share is at 13%, as per the latest data collected by Nielsen.

Since Amazon is one of Netflix’s biggest rivals in the market, any news that the e-commerce giant shares, it is likely to have a significant impact on the stock of the video service provider. Almost every time news is announced by Amazon, Netflix stock sees a fluctuation of almost 5%. Back in September 2011, the retailer launched its Fire Tablet in an effort to compete with the streaming service due to which the stock of Netflix slumped by as much as 10%.

Furthermore, this fluctuation in the stock has witnessed a number of times; previously in 2012 when Amazon acquired access Paramount Films, the stock of the streaming media organization dipped by as much as 5% and another time during the same year, the stock dipped when the retailer announced a multi-year license deal with Epix; this deal meant that the service will gain access to double the titles that were initially on Amazon Prime Instant Video.

Finally, the stock dipped again in December 2015, when the online shopping company launched its streaming partners program. With the help of this project, video providers were able to increase their reach to millions of Prime members. The stock of the video streaming media again fell by 5% when this news was announced by the retailer.

The second company that has a significant impact on Netflix’s stock is Apple Inc. Even though the technology giant does not provide service similar to that of Netflix however it there is even a slight correspondence with the video provider it affects the shares. It has also been reported that Apple is working on its on subscription television service however no such announcement has been made by the company itself yet, the reports emphasized on the fact that it might be working on a cable replacement service.

Netflix stock has significantly been affected every time this news has surfaced since it would be a potential threat for the company, and if Apple gets in the game, Netflix might not remain the largest streaming organization in the United States.

Netflix Inc.'s Competitors are Filling the Gap's in its Product Portfolio

The streaming media giant has some serious competition coming its way as company collaborate to expand sports streaming service.

Netflix, Inc. has managed to stand its ground in the face of increased competition from both domestic and foreign competitors, with its 75 million subscriber base in over 190 countries. Competitors of the company have been looking for loopholes to overtake its success in the video streaming media market and it seems that two of them namely Fox and Sky, largest sports broadcasters, have already achieved to do so.

21^st Century Fox along with Sky have invested $15 million in FuboTV, one of the fastest growing MVPD in the United States. The investment will be used to expand FuboTV’s sports streaming video offering along with developing new features and further market the service to increase the user base. The multichannel video programming distributor was established in 2015 and has over 40,000 subscribers currently. Its prime focus is on the sports and entertainment sector – some of the channels available on the network are Univision Network, beIN Sports and BenficaTV.

This news came right after Sky Plc bough t a $45 million stake in an Asian streaming service, iFlix. The British telecommunication company provided on-demand service all across the European countries. And the recent stake indicates its first foray into the Asian market in an attempt to heat its battle up with the streaming media giant. iFlix was founded last year in May and has over 1 million subscribers currently in the Philippines, Thailand and Malaysia.

Netflix, Inc., Hulu and Amazon have managed to attract most of the streaming media consumers in the market along with attracting top creators of Hollywood movies and TV shows; while FuboTV aims at attracting younger viewers as most of these consumers like to watch big sport events live on television.

The company stated that they offer their programming services for a month subscription of $9.99 which is mostly catered at the young viewers who are not so fond of paying for cable along with men of Latin American descent. As per a statement, the company has managed to raise as much as $20.6 million to date. Others who have provided the sports media company include Edgar Bronfman Jr. Chris Silberman and David Stern along with DCM Ventures and LionTree Partners.

The executive vice president of business operations and development for 21^st Century Fox operating unit Fox Networks Group, Ravi Ahuja stated in the press release that they were quite impressed with the management team of FuboTV and the amount of progress they have made in the short span of time that the company’s been around for. He added that they believe that services like FuboTV will drive innovation further and create a situation which is a win-win for consumers as well as the programmers.

Netflix, Inc. Makes A Surprise Entry In Various Asian Market

Netflix, Inc. shocked the world with its latest release – unless you are sitting in China, Syria, North Korea or the Crimea, you are blessed enough to access the video streaming media service. There was an unprecedented global expansion into 130 countries on January 6, 2015. The original content by the media giant had made its services available in all over the world however the categories might vary from country to country.

Earlier on Wednesday, the video streaming service was launched in India and Russia but not China, catering to over 70 million potential customers in those regions. So the total countries that the service is now available in is 190; now it just need to be in 20 more countries by the end of 2016. This news was revealed at the CES 2016 conference held in Las Vegas, where the media giant had planned to announce the entry into the Indian market.

Along with making the expected announced, it added to it the launch in Russia as well as Indonesia. It is safe to say that the on demand video subscription service is now available in some of the largest countries of the world. Initially in 2015, the company was in talks with Alibaba Group Holding regarding a potential partnership but soon after the Chinese e-commerce giant launched its on video streaming service in the country.

The chief executive officer of one of America’s largest media companies, Reed Hastings stated that it hopes to enter the Chinese market in the near future, as per a blog post by Variety’s Live Blog. Another official announcement was made by the company suggesting that the service will most likely not be available in North Korea, Crimea as well as Syria due to restrictions by the U.S. government.

In the new market, Netflix, Inc. has planned to keep its same pricing strategy. In India, the pricing starts with 500 Indian Rupees which is $7.49 per month for the basic, single user, non-HD package. The standard and premium packages come in about 650 Indian Rupees ($9.75 per month) and 800 Indian Rupees ($11.99). At this point, the customers of the new market are only able to make payments via credit and debit cards. It is highly expected that it might get into partnership with various mobile carriers so that the millions of users who do not own a credit or a debit card are able to make payments easily.