News has been making rounds on the new video streaming platform, DisneyPlus, which a lot of people have been eagerly anticipating. It was said that they are set to rival Netflix once they begin operation.
However, a lot of attention was drawn into Netflix announcing its first quarterly earnings of the year.
There have been reports that Netflix stock fell by more than 1% with a price of around $360. However, experts have given insights into the implication of investing in Netflix.
The Profit for Investing in Netflix
Even with the recent dip, investing in Netflix in the year 2007 would still have been a good deal. According to the quarterly announcement this year, an investment of $1000 made in 2017 would be worth about $110,000 now.
Mathematically the investment would have yielded a 10,000% profit, and this is definitely something all investors want to achieve.
The dip in stock after the announcement was however reported to be momentary, and the shares were said to be up by around 34% on the day of the investment.
Netflix’s Market Strength
However, there are fears that a new streaming company can pose a major threat to the business prospect of Netflix. But analysts are already putting that to bed explaining that even though some other similar services may pose a threat, the launch of a new service from companies like Apple or Disney would not affect Netflix significantly.
They claim that Netflix is already at a place where its services would be more preferred than any other, and this is very favorable for them.
An investment banking organization has also explained that every day, Netflix service holds more grip in the market and they stand at a very strategic position. According to the bank, Netflix is already more or less like a platform.
Further explanation on this states how the platform status accredited to Netflix makes it untouchable by any competing service and has made Netflix the number one for consumers who want to watch something or stream a video. This means that Netflix is becoming more of a culture to many.
Consumers who visit Netflix tend to spend a lot of time on the platform and remain captivated. The only rival close to this is play TV, and as a matter of fact, Play TV is losing its audience to Netflix already.
Estimation of Netflix’s Subscribers
As of February this year, the amount of subscribers on Netflix is a massive 148 million. This will definitely triple in a few years.
Disney plus on the other hand is not expected to be in business until November 2019, and by the time Netflix has tripled the number of subscribers they do now, Disney would still have less than 90 million subscribers.