Netflix will be releasing its Q2 earning today- and the number better be a big one.
After heading off a takeover recently by HBO projected earnings are expected to be around $1.10 a share- consider that it’s started out at .49 cents in January.
At the end of 2013 Netflix had 10% more subscribers in the US than HBO. Worldwide it is closer to 40%. With no middle man or re-seller it has the ability to reach more customers as the internet becomes more and more accessible.
Not to mention Netflix doesn’t have to share with cable operators.
The party might be getting close to the end for Netflix. Amazon now serves up HBO content putting pressure on Netflix to come up with more original content and that might be what will curb Netflix profits. Currently Netflix only produces about 10% of its available programming This number will have to change if Netflix wants to stay in the game.