Netflix's internal recommendation software and large subscriber base give the company an edge when deciding which content to acquire in future years.
TV Everywhere from traditional pay TV distributors has been slow to roll out and largely replicates the linear experience, gifting Netflix with an extended window to remain the leading provider of Internet television in the U.S.
International expansion offers attractive markets for adding new subscribers. Read more
The expansion into international markets is unprofitable today, and any material level of profitability may take five or more years to achieve.
Lawsuits may limit the ability of the FCC to implement strict net neutrality rules in the U.S., thus allowing broadband providers to charge Netflix for access.
Netflix may be overpaying for content due to the presence of Amazon and Hulu. The entry of new competitors may exacerbate the rising cost of content. Read more
We rate Netflix's stewardship of shareholder capital as standard. Despite some missteps, chairman and CEO Reed Hastings successfully transitioned Netflix from a DVD rental service to the premier streaming video on demand service. Hastings founded Netflix Read more
Netflix's primary business is a streaming video on demand service available in the U.S., Canada, Central and South America, and Europe. Netflix delivers original and third-party Read more