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Why Emerging Markets Are The Big Winners In An Age Of Downloadable Netflix

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Why Emerging Markets Are The Big Winners In An Age Of Downloadable Netflix
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Netflix, Inc. (NASDAQ: NFLX) has pulled a rabbit out of the hat. The company has just announced a panacea for the ills of emerging markets.

In a company blog, the Netflix said it would now allow its members worldwide to download and stream great series and films at no extra cost. The drive behind the development is the quest to allow members to view content even in places where the internet is expensive or limited.

How Is The Download Accomplished?

Users just have to click the download button on the details page for a film or TV series, which lets you watch it later without an internet connection. The new feature is made available for phones and tablets on Android and iOS.

What Is Available For Download?

  • "Orange is the New Black."
  • "Narcos."
  • And "The Crown," all available for download beginning Wednesday.
  • The company has promised that more is on the way.

How Emerging Markets Benefit

Emerging markets present an opportunity for Netflix, although the current state of affairs here is far from being conducive for the company to make meaningful inroads. The internet speed in most cases is inadequate to use services offered by digital companies. The twin challenges of low broadband speed and limited access to internet have constrained growth in emerging markets.

Peers

Realizing the potential if these challenges are circumvented, Google parent Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s YouTube has been allowing offline viewing of downloaded content. Amazon.com, Inc. (NASDAQ: AMZN)'s rival streaming service Amazon Prime Video also lets users download content for offline viewing.

Recent Performance

The third-quarter earnings report of Netflix released in mid-October showed strong earnings and subscriber growth for the quarter. Net subscriber growth was at 3.6 million, with 3.22 million internationally and 370,000 domestically. As the domestic market matures, the recourse is to nurture the un-tapped or under-tapped overseas markets. This is where the offline viewing could come in handy.

As much as the emerging markets are benefited, so is the company, which can tap into the enormous potential these markets offer. Thus, it is a win-win situation.

At time of writing, Netflix shares were down 0.31 percent at $117.14.

Posted-In: News Emerging Markets Markets Movers Tech Media Trading Ideas General Best of Benzinga

 

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