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What Company Is Growing Fastest Globally?

The answer to the question posed may be Netflix, a firm that has pursued global expansion with a vengeance for nearly a decade, and continues to do so. The company added 4.45 million new international subscribers in the third quarter of 2017 alone. Q3 revenue increased 30 percent. An external threat however for Netflix is that some content owners such as Walt Disney Company are planning to offer their own movie and video streaming services instead of working with Netflix. Apple expects to spend over $1 billion in 2018 to produce its own original content. To combat external threats, Netflix is spending $8+ billion on content annually, substantially more than its rivals Hulu, Amazon.com, and HBO. Netflix is focused on signing creative talent and acquiring its own production and intellectual property. For example, the company recently made it first acquisition, taking onboard the comic-book publisher Millarworld. In addition to continued global expansion, Netflix’s long-term strategy is to enter more countries, rely less on licensing programs from content suppliers, and to focus more on acquiring original content.

 

Source:  Based on Austen Hufford, “Netflix Subscriber Growth Surges,” Wall Street Journal, October 17, 2017, p. B2.

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