Video streaming company Netflix, Inc. NFLX is leaving no stones unturned to add hit series to its video streaming line-up. Following House of Cards, the company is coming up with a sequel of the 80s sitcom, Full House. Reportedly, the sequel, Fuller House, will debut onNetflix next year. The 13-episode show will be produced by actor and star of the older show, John Phillip Stamos, who will also appear in it.
Reportedly, Netflix has reserved rights to broadcast all episodes of Fuller House.
Currently, Netflix is focused on developing/acquiring new content exclusively for its broadcasting. Its attempts to tap new and upcoming opportunities in the entertainment world and new content based on classic hit shows of the 80s, such as Full House, is one of its strategies to increase its viewership.
Apart from Fuller House, Netflix has scheduled over 20 new original series to be aired this year. The huge demand for its original content has led the company to revise its subscription fee. For existing users in the middle tier, prices may go up $1.00 in 2016 for a two-year contract.
The rapid growth in Internet usage and the increased demand for anytime anywhere viewing have revolutionized the entertainment industry. Given the ease and mobility offered by connected devices, the contemporary entertainment space appears to be ruled by online video streaming companies, especially in developed markets like the U.S.
Netflix is expanding its content library with original productions to counter the growing competition from streaming service providers like Amazon.com Inc. AMZN, Google Inc. GOOG and Time Warner Inc. TWX-owned cable and satellite network HBO, although the resultant escalation in content costs remains a concern.
Nonetheless, an engaging content library that offers a mix of original and third-party shows is necessary to drive growth at Netflix. We believe that the fast-growing subscriber base will drive the top line this year. Additionally, price increases for new users (both domestic and international) will help the company offset the higher expenses.
Currently, Netflix has a Zacks Rank #3 (Hold).
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