Netflix, Inc. (NASDAQ:NFLX) is having a dream period in the Wall Street, with stock hitting new all-time highs in the last week. During the beginning of this year, when the stock was trading around $340, no one would have imagined that the stock would even cross $500, but the stock propelled all the way up by more than 60% since the beginning of the year. Majority of the credit has to be given to a very successful first quarter earnings report. But what’s next for Netflix, Inc. (NASDAQ:NFLX) and how can they keep this momentum on their side? Netflix, Inc. (NASDAQ:NFLX) CEO, Reed Hastings said in an interview to ‘The Times’ that the company is planning to invest in 320 hours of original content in 2015. The Daily Mail North America CEO, Jon Steinberg talked on CNBC about this announcement by Netflix and what it could mean for the other cable companies.
Netflix CEO Hastings announced that the streaming company would invest in making 320 hours of original content in 2015, which is three times more than that they did in 2014. CNBC’s Dominic Chu quoted Hastings comments in his interview to ‘The Times’.
“We’ve had 80 years of linear TV and it’s been amazing and in its day Fax machine was amazing. The next 20 years will be this transformation from linear TV to Internet TV,” Hasting was quoted as saying.
Steinberg said that Netflix is not a competitor to HBO. He thinks that Netflix is a competitor to Comcast Corporation (NASDAQ:CMCSA). He feels that Netflix is a cable system as the cable system is becoming a broadband system. He pointed out that Netflix’s content has a plenty of variety and caters of variety of consumers, which he thinks is the main strength of the streaming company.
Netflix doesn’t own the pipes and it still needs broadband support and distribution support from other companies. Steinberg said that every company needs support from other companies in order to do stuffs. He said that only in internet people start saying that the dependency on broadband company makes them weaker. He feels that Hasting could do a deal with a wireless carrier any time and also with a variety of distribution networks.
Many people feel that Netflix should take the money and stop making original series and invest them in movies. He thinks that these businesses of making original content is like a beast and the beast gets hungrier and demands more as the days rolls on.
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