Netflix Contact Phone 1-800-431-401 Number Australia- For Facing Challenges
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Netflix is facing more challenges in 2016 than in years past. Year to date, Netflix shares are down something like 14%, while the S&P 500 is up almost 6%.
Here are three challenges that Netflix is facing, and how organization is working to overcome them.
No more subscribers left in the U.S.
Netflix by now has nearly 47 million subscribers in the U.S. More than half of Americans say they fob watch Netflix, which is more than YouTube or any other video service, for that matter. With 134 million households and just 88 million broadband subscribers, Netflix is coming up next to a wall in its home country.
To contest the hold up, Netflix has improved its pricing. During the quarter, most longtime subscribers saw their monthly rate increase $2, to $9.99. So even while subscriber growth is slowing, Netflix will get a nice bump in profits. Netflix's outlook for the second quarter shows an 18% increase in profits from domestic streamers despite just 12% increase in total subscribers.
International growth won't be easy, either
At the foundation of the year, Netflix announce its increase to nearly every major market outside of China. Prior to that statement, Netflix operated in about 50 countries, and had just over 18 million international subscribers. The expansion opens Netflix to a bunch of new possible subscribers, but getting them to come on board won't be easy.
While Netflix was increasing in countries in Latin America, the U.K., and Scandinavia, smaller regional competitor started popping up around the world. Meanwhile, Netflix's extend out International level has left its library somewhat lacking in some countries compared to what Netflix is in the U.S. That makes the product considerably less compelling in a lot of Netflix's newly launched markets.
Reliance on media companies
As Netflix gets more popular, its job gets harder. Content deals become more exclusive, and media companies are willing to part with less. But Netflix's motivation to spend is one of its biggest strengths. The company recently converted CW to start streaming its original series on Netflix just eight days after their original runs end. That's although the network's part ownership by the aforementioned Time Warner. No doubt Netflix's checkbook had something to do with that.
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