Yesterday, video streaming service giant, Netflix, Inc. (NFLX – Analyst Report) moved 5.2% higher to close at $117.10 per share. Per TheStreet, a report from Ericsson, which stated that mobile data traffic is expected to witness a 10 times jump by 2021, triggered the rally.

Per the report, video will comprise 70% of the total mobile traffic, up from 50% estimated earlier. Though Alphabet, Inc.’s (GOOGL – Analyst Report) YouTube will account for 70% of the total video traffic in most mobile networks, Netflix has the potential to reach 20% in the regions it operates.

Another report that got Netflix shares soaring this week came from “Land Down Under”.Per a report from the Australian Communications and Media Authority, Netflix attracted 2.5 million subscribers in the first six months of 2015, making a grand entry in Australia.

Per the report, nearly 17% Australians or 3.2 million consumers used streaming services in the first six months of 2015, of which a major chunk (78%) belongs to Netflix Australia. For the seven-day period prior to Jun 2015, 2.2 million consumers subscribed to streaming services, of which 88% used Netflix Australia, outpacing local streaming service providers like Stan, Presto and Quickflix.

We believe Netflix has tremendous growth opportunities. The company is aggressively expanding internationally, especially in emerging economies where the potential for subscriber growth is high. The company plans to cover 200 countries by 2016. Currently, it is available in over 50 countries apart from the U.S., including 13 European nations. Netflix entered Canada in late 2010 and has since expanded its business to Latin America & the Caribbean (Sep 2011), the U.K. and Ireland (Jan 2012) and the Netherlands (Sep 2013). In 2014, Netflix expanded its services to six new European countries — Germany, Austria, Switzerland, France, Belgium and Luxembourg.

Netflix also launched its services in Japan, its first Asian market. Going ahead, Netflix remains focused on Asian markets and will start offering its services in South Korea, Singapore, Hong Kong and Taiwan in early 2016. In addition, the company is planning to expand into China and is reportedly in talks with Chinese broadcasting executives in an attempt to enter the market.

Print Friendly, PDF & Email