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Netflix Hires Facebook Executive to Handle Communications

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Netflix (NFLX - Free Report) recently announced that it has hired Rachel Whetstone as its new Chief Communications Officer. Whetstone, who replaced Jonathan Friedland, is currently a Facebook (FB - Free Report) executive and is expected to join the streaming giant from November this year.

Whetstone’s previous engagements with Alphabet’s (GOOGL - Free Report) Google and Uber indicate the kind of experience she will bring to the table for Netflix, particularly at a time when the streaming giant is increasing its efforts to expand user base by investing heavily on original content.

We believe Whetstone’s exposure to both domestic and international markets is expected to boost Netflix’s presence, especially in the international markets.

International Expansion – A Tailwind

Netflix’s strengthening international content portfolio has been the key growth driver in recent times. The diverse content portfolio is what makes the platform so attractive to users.

Notably, in the last reported quarter, the company added 4.47 million international subscribers, up 39.8% year over year.

The company has been progressing really well in India, South Korea and Philippines among others.

The online video market in India is anticipated to touch $2.4 billion by 2023, per research firm Media Partners Asia. Netflix is increasingly investing in original content in regional programming to cash in on the huge user base.

Moreover, Netflix’s back-to-back commissioning of original content in South Korea is helping the company solidify its footprint. Furthermore, the company’s push into the Philippine market will help the company expand original content portfolio and improve penetration in international markets thereby driving top line.

Netflix, Inc. Revenue (TTM)

 

Netflix, Inc. Revenue (TTM) | Netflix, Inc. Quote

Although international expansion and content additions result in cost escalations we believe that the company’s efforts to further increase customer satisfaction, by hiring Whetstone, coupled with increased original content spending is expected to boost Netflix’s user base going forward.

However, Netflix is set to face stiff competition from the likes of Amazon’s (AMZN - Free Report) Prime, Twenty First Century’s Star India owned Hotstar and many other regional offerings that poses significant threat.

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

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