Netflix to Be Profitable Over the Long Run

Several people claim that the Netflix would be unprofitable over the long run due to increased content costs. But several factors are indicating something different. Netflix seems prepared to introduce new markets to the world and it is also about to enhance its strategy by delivering several streaming services to increase revenue for several prices. Netflix will also keep on developing the shows. Is Netflix profitable? There are some indications that the global segment of the company will be proved as the asset. Netflix is also preparing to introduce new markets in Nordic countries, Latin America, the UK, Ireland and Canada.

In the United Kingdom, around 42% households are using broadband internet with cable and fiber optic. In 2012, it was just 30%. In addition, Nordic countries also enhance access rankings of broadband connection, in the top 10 with all Scandinavian nations. Since the last survey, Canada has also made the move marginally, from 10th to 9th position. Around 81% of Ireland residents are accessing the web from home, as per the reports of Central Statistics Office. Netflix must drastically grow its global clientele over the next couple of years at the yearly growth rate of 20%.

Due to different prices for services, Netflix will improve its revenue. They are planning to enhance their operations by providing broadband services at different price ranges. Users will be able to choose the level of services and Netflix will be able to serve several usage requirements and budgets. This step will definitely improve the revenue of Netflix and gain new client-base by fulfilling the different needs of customers. In the 4th quarter of last year, Netflix roped in over 2 million domestic subscriptions. By summing up, it enjoyed around 33 million subscriptions in total in the US only.  According to the original forecast, Netflix will enhance its subscriptions to 2.4 million, from 1.6 million last year.