Sep 09, 2015 Uncategorized Comments Off on Netflix steps up Asian expansion plans (Investor's Business Daily)
September 9, 2015
By PATRICK SEITZ
INVESTOR’S BUSINESS DAILY
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Fresh off its debut in Japan, Netflix (NASDAQ: NFLX) on Tuesday announced plans to continue its Asian expansion in early 2016 with launches in South Korea, Singapore, Hong Kong and Taiwan.
Netflix began offering its Internet television service in Japan, its first Asian market, on Sept. 2. The Los Gatos, Calif.-based company plans to be in about 200 countries by the end of 2016, completing its global rollout. It currently offers service in more than 50 countries, mostly in the Americas and Europe.
“The combination of increasing Internet speeds and ubiquity of connected devices provides consumers with the anytime, anywhere ability to enjoy their favorite TV shows and movies on the Netflix service,” Netflix CEO Reed Hastings said in a statement . “These four markets well represent those trends.”
As of June 30, Netflix had 42.3 million U.S. streaming subscribers and 23.3 million international subscribers, for a total of 65.6 million. It expects to end the September quarter with 69.1 million streaming subscribers.
But Netflix’s success has drawn increasing activity from competitors, including Alibaba (NYSE: BABA), Amazon.com (NASDAQ: AMZN) and Hulu. Those competitive threats have weighed on Netflix stock recently.
Netflix stock, though, was up 6.5% in midday trading on the stock market today, above 101. Netflix shares had fallen for seven straight trading days before Wednesday. Netflix hit an all-time high of 129.29 on Aug. 5.
Short seller Citron Research announced on Sept. 2 that it was targeting Netflix shares. It said competition is heating up for Netflix and predicted its stock would fall to 80.