We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Expands in South Korea with Original Content
Read MoreHide Full Article
Netflix (NFLX - Free Report) stock has gained 12% on a year-to-date basis as compared with the S&P 500 market’s increase of 6.3%. The upside can be attributed to the company’s impressive fourth-quarter 2016 earnings results, subscriber growth and expanding original content in overseas markets like South Korea.
Netflix recently announced its second Korean original television series – Kingdom – a historical zombie-thriller drama produced by Astory.
We note that the company’s continued focus on international expansion is driving its top-line growth providing competitive leverage against the likes of Amazon (AMZN - Free Report) Prime. In the latest quarter, it added 5.12 million of new international subscribers and anticipates adding another 3.70 million in first-quarter 2017.
Netflix’s intent to strengthen international original content portfolio has been the key growth driver in recent times. The global popularity of its first Brazilian original show “3%” shows that the company’s strategy of developing regional content and local programming is a success.
Kingdom is expected to be a runaway success as it brings together director Kim Seong-hun and writer Kim Eun-hee – two well-known figures of Korean film and television industry. The eight-episode series will premier on Netflix in 2018.
Early this year, Netflix commissioned its first Korean drama - Love Alarm – which is set for 2018 release. The series will be produced by Hidden Square, led by Lee Jae-moon who is credited with the success of television series like Signal, which was written by Kim Eun-hee.
The back-to-back commissioning of original contents reflects Netflix’s focus on solidifying footprint in South Korea, an important Asian market for the company after Japan and India.
As noted in its fourth-quarter letter to shareholders, Netflix inked a deal with Red Chillies Entertainment, the production company of Indian film star Shah Rukh Khan. The company is also planning to develop original programs based on Japanese anime and Turkish dramas.
We believe that Netflix’s expanding international content portfolio will rapidly drive subscriber growth that will further boost the stock price in the rest of full-year 2017.
Long-term earnings growth rate for ITV and Grupo is currently pegged at 3.5% and 17.1%, respectively.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Expands in South Korea with Original Content
Netflix (NFLX - Free Report) stock has gained 12% on a year-to-date basis as compared with the S&P 500 market’s increase of 6.3%. The upside can be attributed to the company’s impressive fourth-quarter 2016 earnings results, subscriber growth and expanding original content in overseas markets like South Korea.
Netflix recently announced its second Korean original television series – Kingdom – a historical zombie-thriller drama produced by Astory.
We note that the company’s continued focus on international expansion is driving its top-line growth providing competitive leverage against the likes of Amazon (AMZN - Free Report) Prime. In the latest quarter, it added 5.12 million of new international subscribers and anticipates adding another 3.70 million in first-quarter 2017.
Netflix’s intent to strengthen international original content portfolio has been the key growth driver in recent times. The global popularity of its first Brazilian original show “3%” shows that the company’s strategy of developing regional content and local programming is a success.
Netflix, Inc. Revenue (TTM)
Netflix, Inc. Revenue (TTM) | Netflix, Inc. Quote
Expansions in South Korea, India: Key Catalysts
Kingdom is expected to be a runaway success as it brings together director Kim Seong-hun and writer Kim Eun-hee – two well-known figures of Korean film and television industry. The eight-episode series will premier on Netflix in 2018.
Early this year, Netflix commissioned its first Korean drama - Love Alarm – which is set for 2018 release. The series will be produced by Hidden Square, led by Lee Jae-moon who is credited with the success of television series like Signal, which was written by Kim Eun-hee.
The back-to-back commissioning of original contents reflects Netflix’s focus on solidifying footprint in South Korea, an important Asian market for the company after Japan and India.
As noted in its fourth-quarter letter to shareholders, Netflix inked a deal with Red Chillies Entertainment, the production company of Indian film star Shah Rukh Khan. The company is also planning to develop original programs based on Japanese anime and Turkish dramas.
We believe that Netflix’s expanding international content portfolio will rapidly drive subscriber growth that will further boost the stock price in the rest of full-year 2017.
Zacks Rank & Other Key Picks
Currently, Netflix carries a Zacks Rank #2 (Buy). ITV Plc (ITVPY - Free Report) and Grupo Televisa (TV - Free Report) are two other favourably placed in the sector carrying the same rank as Netflix. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings growth rate for ITV and Grupo is currently pegged at 3.5% and 17.1%, respectively.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>