The Netflix Group has just beaten a real performance record, with a share price that has risen by more than 4,000% since 2010. We invite you to learn more about this news and its likely impact on investors who are interested in this stock and who invest in its price.Trade Netflix shares!
In December 2010, Netflix went public on the S&P 500 index, with nearly 12 million subscribers already subscribed.s for its service, which at the time consisted of DVD rentals and long before becoming the major player in video on demand that we know today.
At that time, the DVDs were physically delivered to the tenants in red envelopes, which became emblematic of the brand and contributed greatly to its popularity.
Today, barely 10 years later, the Netflix Group has just beaten a real stock market growth record, with a performance of 4,181%. This is not only a record for the company but also compared to all other companies listed on this New York stock exchange index. Among the other very strong increases in this stock market index, we find the Amazon group with a rise of 1,787%, the Mastercard group which rose by 1,126%, the Apple group which gained 966% among others, which is much less than Netflix over the same period. The S&P 500 index as a whole has risen by 189% over the last nine years.
One may therefore wonder about the causes of Netflix's meteoric rise on the stock market. In all likelihood, the success of this company is largely due to the success of its video streaming offer, of incomparable quality, and the catalogue of several thousand films and series available for download on demand.
But what really differentiated Netflix's offer from that of its competitors is the intuition that the company had in 2012 when it started producing and financing its own productions. It started with the Norwegian series Lilyhammer in 2012 and then the famous House of Cards in 2013.
Since that time, the group has continued to multiply its investments. In 2019, Netflix invested no less than $15 billion to finance its exclusive content, an increase of 70% compared to 2017.
The fact that the Netflix Group has made so many investments over the past few years has been very wise and very profitable for the group, since in the third quarter of 2019, the US streaming group had no less than 158 employees.3 million subscribers of which more than 62% are international.
More specifically and for the Europe, Middle East and Africa market, the number of subscribers to the platform was 47.4 million in the paid version. The Latin American market numbered 29.4 million and the Asia Pacific market numbered 14.5 million. It is therefore mainly outside the US market that the Group achieves most of its growth, which is why Netflix invests so much in local content for this clientele. Some of these series, such as Casa de Papel, were eventually a huge success all over the world.
As for the years to come, things are likely to get tougher for the Netflix Group, with increasingly strong competition, particularly from NBCUniversal, AT&T or HBO, NBC, AT&T, HBO and the US.Amazon, Apple, Disney and many other companies are launching or will launch their own streaming services and will also withdraw their programs from the Netflix platform.