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Netflix Inc

Netflix, the Precursor of video streaming

 

 

Presentation of the company

Netflix is an American multinational company created in 1997 that specializes in the distribution and exploitation of film and series through a dedicated platform. The platform broadcasts mostly programs already released on television or in the cinema, but also, for 8% of the content, exclusive programs that it holds the license. The latter are then labelled "Netflix Original".

The company has different prices and catalogues in different countries. For example, there are more than 5500 movies available in the United States against almost 2000 in France.

In 2021, Netflix launched a series of mobile games, for the moment exclusively available on Android.

Netflix is one of the largest video-on-demand platforms in the world. The company is considered a pioneer in this field.

Source : macrotrends.com

Source : statista.com

 

History of Netflix

 

The Netflix company was created by Reed Hastings (current CEO) and Marc Randolph in 1997. The company originally intended to take advantage of the rise of the DVD format to offer monthly rentals. That's how their business started in 1999. At the very beginning of the 21st century, Netflix is facing financial difficulties, but its entry into the stock market in 2002 will allow it to obtain 82 million dollars.

In 2007, the company started renting video on demand on computers. In the 2010s, Netflix is experiencing significant development. Their offer extends to the whole world. Customers are becoming more and more numerous. Finally, their catalogue is growing year after year.

Today, Netflix is a giant of video on demand, known worldwide, with a market capitalization of over 165 billion dollars.

Source : macrotrends.com

Source : statista.com

 

The market

 

The main activity of Netflix is the exploitation and distribution of movies and series. It is a relatively young sector as it only really appeared in 2000 with the development of broadband internet. The customers of this market are mostly young, with 60% of the users being under 35 years old in 2021. It is a market where demand is very strong, with a strong competition. Communication, updating of offers and programs is essential to attract and retain customers.

Due to the global health crisis, the lifestyle of the world's population has changed dramatically. Staying at home has been a boon to this market, creating a huge demand. These new customers, moreover, have become regular customers as a result of this change in habit. This market looks like an interesting post-COVID market, and analysts see it growing in the coming years.

Source : cafedelabourse.com

Source : statista.com

 

Key Figures and Financial Ratios

 

Market capitalization: $80.12 billion[1] (May 24, 2022)
Turnover: $29.698 billion[2] (2021)
Net income: $5.116 billion[3](2021)
Dividends paid: No dividends
Earnings per share: $11.24[4] Over the year 2021
Price/earnings ratio: ≃35.01[5](2021)
Debt to capital ratio: 0.83[6] 2022)

Source : statista.com

Source : macrotrends.com

Sources:

[1] https://companiesmarketcap.com/netflix/marketcap/
[2] https://s22.q4cdn.com/959853165/files/doc_news/Netflix-Releases-Fourth-Quarter-2021-Financial-Results-2022.pdf
[3] https://s22.q4cdn.com/959853165/files/doc_news/Netflix-Releases-Fourth-Quarter-2021-Financial-Results-2022.pdf
[4] Macrotrends.com
[5] Investing.com
[6] https://ycharts.com/companies/NFLX/debt_equity_ratio

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