“Just do the math,” some might say, and imagine the buying power of a Netflix with a spectacular 360 million subscriber base. At that level – even at current $10 or so monthly subscriber rates – the potential is simply enormous.
A 350+ million subscriber base would more than match the combined buying power of the US networks, most – current – pay-TV broadcasters and be capable of mopping up just about every sports game on the planet. However, CEO Reed Hastings says Netflix isn’t interested in sports, in which case what else will he be spending his cash on?
The 360 million forecast is from equity analysts at Bank of America/Merrill Lynch, which reiterates its ‘Buy’ rating on Netflix stock, and states that Netflix can grow its numbers by 8 per cent annually through 2030.
“We believe Netflix still has a considerable opportunity ahead if it can achieve reasonable penetration levels internationally,” equity analyst Nat Schindler said in a note to investors May 18th. “Netflix will face varying levels of competition, regulation and economic conditions in each individual market it participates in, but its content scale should allow it to become the dominant streaming player in virtually all markets.”
Currently Netflix has around 125 million subscribers globally, although it is making no secret that India alone could add 100 million subs over the next few years.