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Netflix Inc. (NFLX - Free Report) has brought on board another Academy Award winning director Damien Chazelle, the name behind the Oscar nominated movie “La La Land”, for an eight-episode musical series named The Eddy.

Six-time Grammy winner, Glen Ballard will be composing the music and the series will be written by five-time BAFTA award winner, Jack Thorne.

BAFTA-winning producers Patrick Spence and Katie Swinden's Fifty Fathoms will be producing the series. Chazelle will serve as one of the executive producers and will also be directing two episodes of the series. Jack Thorne, Alan Poul and Glen Ballard are the other executive producers.

The move marks the company’s focus on international markets as reportedly The Eddy will be shot in Paris and apart from English, the series will also have dialogues in French and Arabic.

Growing International Footprint

Netflix’s efforts to rapidly expand internationally and into original regional content have paid off. Reportedly, 4.14 million new subscribers were added overseas in the last quarter. International Streaming revenues (41.8% of total revenue) soared 53.7% year over year to $1.165 billion driven by an increase in paid members in the last reported quarter. The company expects to add 3.65 million subscribers in the international segment in the third quarter.

Moreover, per Variety, Netflix plans to spend $6 billion on original content in 2017 and $7 billion in 2018. We believe by investing in series’ like The Eddy, the company will be able to attract more international subscribers. Not only will this boost its topline further but also help it to sustain share price momentum.

Apart from The Eddy, an original German series named Dark is set to premiere later this year. Also, the second season of The Crown series – based on the life of Queen Elizabeth II- is set for release on Dec 8, per Netflix.

Notably, shares of Netflix have gained 41.1% year to date, significantly outperforming the industry’s16.7% rally.

Other Recent Announcements

Last month, Netflix signed a multi-year deal with one of the most successful television producers, Shonda Rhimes. It also renewed the series Ozark for a 10-episode second season. The company had also announced an unnamed talk show by the prolific David Letterman and a Western anthology series by Oscar-winning Coen brothers set to release in 2018.

Competition

Netflix primarily faces competition from the likes of Amazon (AMZN - Free Report) Prime, Hulu and Time Warner’s HBO. Given the high growth opportunity in the video streaming market, all the players are ramping up their efforts to boost subscriber base. The companies are undertaking a number of initiatives such as investing more in regional programming and creating more kids and family oriented content to gain an edge.

Reportedly, Amazon will be spending $4.5 billion on content this year and as part of it has also scheduled the premiere of its original series, Lore, on Oct 13.

We note that last month Snap Inc. (SNAP - Free Report) also announced its intention to create three-to-five minutes long original scripted content by the end of 2017.

Also, tech giant Apple’s (AAPL - Free Report) plans to partner with Culver Studio, as part of its $1 billion investment in original content over the next year, will further intensify competition in our view.

Zacks Rank

Currently, Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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