Nimble Netflix
Netflix tops this list of high-performing stocks, posting gains of well over 1,000% since mid-2013. The streaming video giant has successfully reinvented itself over its longer history, pivoting away from the dying DVD-rental business and instead embracing technological advances that made it possible for viewers to watch their preferred entertainment options more quickly and efficiently. Having made huge inroads in the U.S. market, Netflix then turned its attention overseas, where it found an equally hungry audience for its content and distribution services.
One of Netflix's biggest challenges has been obtaining high-quality content to show to its viewers. Although the streaming service has made successful partnership deals with many outside content providers, Netflix also found it worthwhile to start working on developing its own original content. That's been an expensive up-front proposition, but it has also created cost savings on the back end that should keep paying off for decades to come. Critical acclaim has also shown that the upstart could successfully carve out a niche despite Hollywood's long reign over the movie and television production arena.
Even with Netflix having raised subscription prices on a fairly regular basis, its value proposition is still a lot more attractive than traditional cable television. As more people cut the cord, attractive price points should give Netflix a competitive advantage that it can use as leverage well into the future, producing further potential share gains in the years to come.
No comments:
Post a Comment