Netflix in 2015: Shares, subscribers soared

What a difference a few years makes. In 2011, Netflix faced a customer revolt in its attempt to speed up the transition from DVDs to video streaming by raising prices and spinning off its DVD business, a move it later reversed. By the end of that year, the Los Gatos company had lost billions of dollars in market value and was considered a takeover target.

Fast forward to 2015. Netflix shares are up more than 580 percent since what an analyst called the company’s “nuclear winter.” They’ve risen 142 percent this year alone. The company’s stock reached an all-time closing high of $130.93 earlier this month, and was the biggest gainer on the S&P 500 this year. It surpassed old-guard media company CBS in value, the Associated Press notes.

When it reported third-quarter earnings in October, the company said it had about 69.2 million subscribers, up 30 percent from a year earlier. Its global expansion continues, and it’s ramping up spending on original content — which as it likes to point out has scooped up a bunch of nominations and awards.

Netflix has a lot of competition in the streaming world, but as I wrote earlier this month, it dominates in North America: A report said Netflix video accounted for 37.1 percent of downstream traffic during peak evening hours, far ahead of YouTube at 17.9 percent and Amazon Video at 3.1 percent.

If the company’s success continues to be reflected in its stock in 2016, its top executives stand to make a boatload of money. CEO Reed Hastings — who’s scheduled to take a salary cut (he’ll only be paid $900,000 instead of $1 million, alas) — is being awarded $19 million worth of stock options, according to a company filing this week. Ted Sarandos, the company’s chief content officer, will get $11.8 million in stock options and has an estimated target bonus of $4 million on top of his $1 million salary.

 

Photo: Associated Press

[graphiq id=”ir8PaXfmYT3″ title=”Netflix Inc. (NFLX) Stock Price – 1 Year” width=”600″ height=”487″ url=”https://w.graphiq.com/w/ir8PaXfmYT3″ link=”http://listings.findthecompany.com/l/16808888/Netflix-Inc-in-Los-Gatos-CA” link_text=”Netflix Inc. (NFLX) Stock Price – 1 Year | FindTheCompany”]

 

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  • Sami McFarlane

    Got access to the full Netflix movie library by switching my Netflix region using this guide https://goo.gl/wNJEii

  • Peter P Pumpkineater

    This is one of the most misleading statements that “analysts” and “experts” always quote in every story about netflix without any understanding of what it means”

    “A report said Netflix video accounted for 37.1 percent of downstream
    traffic during peak evening hours, far ahead of YouTube at 17.9 percent
    and Amazon Video at 3.1 percent.”

    These “traffic” numbers represent the percent of bandwidth consumed not hours of streaming content. The vast majority of Netflix content is streamed at 1080P and the vast majority of YouTube traffic is streamed at 480p. Since 1080P consumes more than 4x the bandwidth of 480P this means that YouTube hours of video consumed is actually more than double Netflix..

 
 
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