{"id":24278,"date":"2015-03-25T19:38:06","date_gmt":"2015-03-25T23:38:06","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=24278"},"modified":"2015-04-17T21:57:55","modified_gmt":"2015-04-18T01:57:55","slug":"netflix-6","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2015\/03\/25\/netflix-6\/","title":{"rendered":"NETFLIX"},"content":{"rendered":"
by\u00a0BESS HOWELL<\/pre>\n
\"Netflix_Web_Logo\"<\/a>
Netflix Logo – Courtesy of pr.netflix.com<\/a><\/p><\/div>\n
Corporate Headquarters [3]<\/a><\/strong><\/p>\n
100 Winchester Circle\u00a0Los Gatos, CA 95032<\/p>\n
+1 (408) 540-3700<\/p>\n
http:\/\/netflix.com\/<\/a><\/p>\n
Leadership [1]<\/a><\/strong><\/p>\n
\"reed\"<\/a>
– Reed Hastings: Founder and CEO<\/p><\/div>\n
 <\/p>\n
\"david_wells\"<\/a>
David Wells: Chief Financial Officer<\/p><\/div>\n
 <\/p>\n
\"Kelly_Bennett_130_195\"<\/a>
Kelly Bennett: Chief Marketing Officer<\/p><\/div>\n
 <\/p>\n
\"jonathanfriedland[1]\"<\/a>
Jonathan Friedland: Chief Communications Officer<\/p><\/div>\n
\"tawnicranz\"<\/a>
Tawni Cranz: Chief Talent Officer<\/p><\/div>\n
 <\/p>\n
\"ted\"<\/a>
Ted Sarandos: Chief Content Officer<\/p><\/div>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
 <\/p>\n
History [2]<\/a><\/strong><\/p>\n
\"print-2\"<\/a>
Courtesy of 3dprint.com<\/p><\/div>\n
In 1997,\u00a0Reed Hastings<\/a> and partner Marc Randolph founded Netflix. Initially, the company was founded to offer online movie rentals. Consumers were able to pick from a selection of titles and have them delivered to their homes. Two years later, Netflix became a subscription-based service, providing customers with unlimited movie rentals for a monthly rate. In 2002, Netflix became a publicly\u00a0traded company on NASDQ<\/a>. In 2007, Netflix introduced its extremely popular movie and television streaming service. International expansion began in 2012, Netflix becoming available in Latin America and the Caribbean. Netflix introduced original content in 2013, including the award-winning shows \u201cHouse of Cards\u201d<\/a> and \u201cOrange is the New Black.\u201d<\/a> Now with over 60 million global subscribers, Netflix is a notable name and pioneer in the television industry.<\/p>\n
 <\/p>\n
Financials [7]<\/a><\/strong><\/p>\n
\"Screen<\/a>
Courtesy of Google Finance<\/a><\/p><\/div>\n
Netflix\u2019s 2015 first quarter earning results were extremely mixed<\/a>, but in the end left investors happy and the company optimistic about the future\u00a0[6]<\/a>. Netflix reached the analyst forecasted revenue of 1.57 billion dollars, but per share earnings dropped to 38 cents. Although Netflix surpassed the previous year\u2019s revenue, EPS\u00a0dropped over 50 cents from 2014. This can be partially attributed to the Q1 net income, at 23.7 million, which decreased 55.4% from one year ago [9]<\/a>. This loss is a result of the strong U.S. dollar, which greatly lowered international revenue. Without loses due to the foreign exchange rate, the per-share earnings would have been recorded at 77 cents [8]<\/a>. Netflix stock increased over 18%, reaching an all time high of $530 dollars. Analysts believe this is due to the massive subscriber growth, which increased by 4.9 million in the first quarter of 2015 for a total of 62.3 million [5]<\/a>, 500,000 more than the company had expected. Stocks may not stay at the high price they reached, as CEO Reed Hastings proposed a stock split in the near future. If the stock split does not happen however, FBR & Co<\/a> analyst Barton Crockett predicts that Netflix shares could reach $900 within the next year [4]<\/a>. With a loyal consumer base, growing subscribers, and plans for global expansion, there is not much in the company\u2019s way for it\u2019s numbers to only go up.<\/p>\n
 <\/p>\n
Global Expansion<\/strong><\/p>\n
\"Netflix1-1024x659\"<\/a>
Netflix overseas expansion is the leading driver of subscriber growth. Courtesy of broadbandtrends.com<\/a><\/p><\/div>\n
Global expansion has become a huge part of the Netflix business model. As subscriber growth slows<\/a> in the United States, the company looks to other markets in order to both raise revenue and increase opportunities\u00a0[12]<\/a>. Currently operating in over 50 countries, Netflix announced in January that they planned to launch the service in 200 countries by 2016 [13]<\/a>, with the hopes of going global by 2020 [11]<\/a>. Although the company currently loses money in it\u2019s international business, they predict it to be profitable by 2017. Despite these loses, Netflix is extremely well received in its abroad markets. It was released in early April that less than a year after being launched in Europe, Netflix buttons are being added to remote controls that will be shipped all over the continent [16]<\/a>. Already in 2015, Netflix has become available in Cuba [15]<\/a>, Australia, and New Zealand [10]<\/a>, and is set to launch in Japan this coming fall [14]<\/a>. The company is also looking into the possibility of launching in China. Global expansion means the opportunity of having content viewed over the entire world, which will open Netflix up to many opportunities for both licensing and producing even more material[12]<\/a>.<\/p>\n
 <\/p>\n
Netflix Originals and Exclusives<\/strong><\/p>\n
In a consumer survey released yesterday that was conducted by FBR & Co<\/a>, Netflix users said that they prefer the Internet streaming service to television [22]<\/a>. Much of this has to do with the original content Netflix has been producing in the last few years. On February 27th<\/sup> the company released the third season of its award winning original, \u201cHouse of Cards,\u201d<\/a> which received global attention. It was released on April 2nd<\/sup> that the show\u2019s fourth season would air sometime in 2016 [23]<\/a>. March 6th<\/sup> marked the premier of \u201cUnbreakable Kimmy Schmidt,\u201d and on March 20th<\/sup> their new dramatic thriller \u201cBloodline\u201d was released. On April 10th<\/sup> Netflix aired Marvel\u2019s \u201cDaredevil,\u201d the first of a five series-deal\u00a0[18]<\/a>. The company also released the teaser for the fourth season of \u201cOrange Is The New Black\u201d two days ago [17]<\/a>. For the rest of 2015, Netflix plans on releasing five more original series [18]<\/a>, as well as five additional original programs geared towards children [26]<\/a>.<\/p>\n