Yahoo Finance Netflix Grows Global Content, Brings French Film Blockbuster
Recently, Netflix Inc. NFLX announced that it is set to exclusively premiere July Hygreck’s debut film, Blockbuster on the platform.
The romantic comedy, starring Charlotte Gabris and Syrus Shahidi in the leading role, will be available on the streaming platform from Jan 24.
Per the blog post, “If you like laughters, if like a good cry, if you like life, if you like Paris, if you like romantic comedies, if you like big blockbusters, if you like small blockbusters: you are going to like our Blockbuster.”
Bringing the French original movie to the platform marks the company’s focus on international markets, which has been the key growth driver for it.
Notably, shares of Netflix have gained 65.5% in the past year, substantially outperforming the industry’s 18.7% rally.
Growing International Footprint
Netflix’s efforts to rapidly expand internationally and into original regional content have paid off.
Reportedly, 4.45 million new subscribers were added overseas in the last reported quarter. International Streaming revenues (44.5% of total revenue) soared 55.6% year over year to $1.327 billion driven by an increase in paid members in the third quarter. The company expects to add another 5.05 million international subscribers in the fourth quarter.
Netflix’s investment in producing films is also beneficial for the company. The company’s portfolio of original films improved with the addition of Death Note, Naked and To the Bone to its platform in the third quarter.
Per Nielsen data, which was quoted by Bloomberg, Bright released in December, starring Will Smith and Joel Edgerton, was made with a budget of $90 million. It went on to attract 11 million views in the first three days of its release.
The company also stated that Bright had more international viewers than domestic ones. This bodes well for Netflix since it is looking to expand its international presence as the domestic market approaches saturation.
Netflix, Inc. Revenue (TTM)
Netflix, Inc. Revenue (TTM) | Netflix, Inc. Quote
Moreover, an original German series named Dark and the second season of The Crown series – based on the life of Queen Elizabeth II – launched by the company in the fourth quarter of 2017 are gaining popularity worldwide.
Besides, the company’s upcoming eight-episode musical series named The Eddy shot in Paris and with dialogues in French and Arabic apart from English will help it attract more international subscribers. Not only will this boost its top line but also help it to sustain share price momentum, in our view.
Zacks Rank & Stocks to Consider
Netflix carries a Zacks Rank #3 (Hold).
Broadcom Limited AVGO, NetApp Inc. NTAP and Applied Materials Inc. AMAT are some of the better-ranked stocks in the broader technology sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for Broadcom, NetApp and Applied Materials is projected to be 13.8%, 11.3% and 12.7%, respectively.
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