Trefis'  Instablog

Trefis
Send Message
Led by MIT engineers and Wall Street analysts, Trefis.com helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the... More
My company:
Trefis.com
My blog:
Trefis Note of the Day
  • How much can Netflix subscribers grow?  0 comments
    Oct 27, 2009 12:45 PM | about stocks: NFLX
    Netflix revealed double-digit subscriber growth when it reported its Q3 2009 results last Friday.   The company also recently announced a partnership with Sony that will allow Netflix subscribers to stream videos to their TVs through a PlayStation 3 (PS3) gaming console.  We've updated the Trefis price estimate for Netflix slightly from $57.03 to $58.97 to reflect higher subscriber growth and more video streaming per subscriber than we had expected.

    Netflix reported an increase of 500,000 subscribers during Q3 resulting in total subscribers of 11.1 million.  The company is expecting 12 to 12.3 million subscribers by the end of 2009, implying at least 900,000 subscriber additions, primarily as a result of the PS3 partnership.  We've updated our Netflix Subscriber forecast to reflect 12 million subscribers by the end of the year since we believe that Netflix's subscriber forecast is already aggressive.

    We've also updated our forecast for the Number of Videos Streamed per Subscriber from 1 to about 1.2 as a result of the PS3 partnership and other potential partnerships with consumer electronics manufacturers.  Around 40-42% of Netflix subscribers have tried streaming (up from under 15% in the prior quarter) and a significant portion of them use it on a regular basis.  Netflix also announced plans to launch a streaming-only service in a few countries outside of the US.

    You can find additional detail on the update to our Netflix estimate here (scroll down to comments section).

    Disclosure: No positions
    Stocks: NFLX
Back To Trefis' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.