Netflix Inc (NASDAQ:NFLX) [Trend Analysis] is one of those hugely disruptive stocks for the television industry, but with that said, at the moment Netflix subscriber base is dominated by the US compared to the rest of the world. With that said, we see this one huge play Netflix could make to likely get in an enormous amount of more subscribers across the globe.
At present, the latest data we have suggests that around 30% of Netflix (NASDAQ:NFLX) subscriber base is in the US vs 70% globally, however, the next largest countries, Canada and the UK, only have about 3.5% each. So there is a huge discrepancy. Nevertheless, there is still a huge market to be captured globally for Netflix, one of the reasons that Netflix is valued so highly.
However, there are a large amount of streaming services come on line that are competing with Netflix, so to make it and grow market share and beat these competitors, NFLX will need to ensure they have a superior product. The major way of doing this is offering exclusive shows. One way Netflix is currently going about this is by offering some of their own in house productions such as the hugely successful “House of Cards”. Although very popular and a fantastic move by Netflix, it is a very US centric show.
So the time now has presented itself for NFLX to make a huge play in this are of their own production, and they need to strike while the iron is hot. The worlds most successful television show has just sacked their ever popular host and he, and likely his co-hosts and much of his team are ripe for the picking. Yes, we are talking about the hugely popular BBC show “Top Gear”, whose host was sacked by the station last week.
The sacking of Clarkson has made world headlines, maybe not in the US, but it has made the prime time news on most TV channels and been in all the papers. That is how loved and well known Top Gear is. With that being the case, Netflix (NASDAQ:NFLX) could hire Clarkson and co and start producing their own Top Gear or similar and hugely grow their global audience, as such a marquee show would certainly bring in many additional subscribers. The show may not be so popular in the US, but you can be sure the rest of the world will be talking if Clarkson is signed up to Netflix.
Netflix (NASDAQ:NFLX) will need to strike soon if they can manage this, otherwise, there are likely other media companies trying to get Clarkson and Co on board and Netflix will miss out on it and the growth opportunities it could provide globally.