Netflix, Inc. (NASDAQ:NFLX) is the market leader when it comes to On Demand screening services with a user base of over 69 million streaming users in more than 50 countries enjoying TV shows and movies at $9.99 per month, which include documentaries, films and original series. Recently after Netflix announced its 3rd Quarter's report a lot of investors got disappointed and the share price went down by more than 10%. The analyst had forecasted an earnings per share of $0.08 on revenue of $1.75 billion while Netflix reported an earnings per share of $0.07 on a revenue of $1.58 billion. However while the earnings were down 50% as compared to last year, the revenue rose more than 29%.
According to many analyst and consultants it might be a poor choice to hold on to Netflix's stock or buy more of it, but here's why you should consider giving Netflix a chance to prove its worth. Firstly Netflix is one of the very few companies in the market with an ever expanding user base. Netflix reported a total user growth of 3.62 million which topped analysts' estimates of 3.55 million. Currently Netflix has a user base of over 69 million. At the same time last year Netflix user base was
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A few years ago as the smart phone evolution revolutionized the world on demand services like Netflix became the talk of the day. Since then traditional television has started dying which has greatly improved the growth rate of services like Netflix. Netflix CEO Reed Hastings said "consumers can watch when they want, on what type of device they want, and the content has just gotten better and better. So the fundamental confidence about the large scale is because on-demand is a better experience than linear, and the entire market is going to move from linear to on-demand internet television over the next 10 to 20 years". Hence since the television market has started to evolve Netflix future seems secure as it is the market leader when it comes to On Demand