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Netflix Inc

Netflix, the Precursor of video streaming

 

 

All that you need to know about Netflix Inc.

Netflix is an American multinational company created in 1997 that specializes in distributing and exploiting film and series through a dedicated platform. It is one of the world’s leading subscription streaming services and production companies offering 221 million paid memberships in over 190 countriessup1. 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 is then labelled "Netflix Original". The series and content from the company are available on their website and applications (apps). All the paid members can watch and enjoy unlimited Netflix content with a variety of genres of TV series, documentaries, feature films, and movies on any device and screen with internet connection.

The company has different prices and catalogues show steaming in different countries. For example, more than 5500 movies are available in the United States against almost 2000 in France. They also stream various Netflix series with exclusive or shared ownership right in various countries. They also come up with a trending Netflix series list that month to help increase customer engagement.

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

 

Netflix Company History

 

The Netflix company was created by Mr. Reed Hastings (current CEO) and Mr. Marc Randolph in 1997. Mr. Reed Hastings is Netflix's owner. The company originally intended to take advantage of the rise of the DVD format to offer monthly rentals. That is how their business started in 1999. At the very beginning of the 21st century, Netflix is facing financial difficulties.

In 2007 Netflix started renting a video on demand on computers. In the 2010s, Netflix is experiencing significant development. Their offer extends to the entire world. Finally, their catalogue is growing year after year.

Today, the company is a giant of video on demand, known worldwide, with a market capitalization of over $80.12 billion

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. It is a market where demand is very strong, with intense competition. Communication and updating of offers and programs are 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. Moreover, these new customers have become regular due to this habit change. This market looks interesting post-COVID, 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: 3.20x[4] June 2022
Price/earnings ratio: ≃35.01[5] (July 22, 2022
Debt to capital ratio: 6.3% [6] ( 2022)

Source : statista.com

Source : macrotrends.com

Graniteshares Offering Products

NETFLIX

FAANG

GraniteShares FAANG ETPs provide exposure to the equal weight to following companies: Facebook, Amazon, Apple, Netflix and Alphabet

FATANG

GraniteShares FATANG ETPs provide exposure to the equal weight to following companies: Facebook, Amazon, Tesla, Apple, Netflix and Alphabet

 

Sources:

  1. Market capitalization of Netflix marketcap
  2. Netflix-Releases-Fourth-Quarter-2021-Financial-Results Netflix
  3. Netflix-Releases-Fourth-Quarter-2021-Financial-Results  Netflix 
  4. Ycharts
  5. Mactrotrends 
  6. Finbox  

 

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