Per a recent report from broadband research company, Sandvine, Netflix Inc (NASDAQ:NFLX) continues to dominate Internet traffic – especially at night.
Currently, the video streaming service accounts for 35% of total downloaded Internet traffic with Google's (NASDAQ:GOOGL) YouTube at the second position with 14% share followed by Facebook Inc (NASDAQ:FB) , Apple's (NASDAQ:AAPL) iTunes and Amazon.com's (NASDAQ:AMZN)s Instant video service with 3%, 2.8% and 2.6% shares, respectively.
Moreover, Netflix recently acquired the exclusive right to stream the fourth season of the arts & entertainment (A&E) show, Longmire, comprising 10 episodes. The set of new episodes will air in the U.S., Canada, Australia and New Zealand, once its streaming commences in 2015.
Shares of Netflix recovered 1.39% ($5.04) to close at $368.14 on Nov 20, 2014 light of the recent events.
Earlier Netflix shares had declined 5.25% ($20.11) on Nov19, 2014 following the company’s decision to shelve the premier of comedy special Bill Cosby 77. Following renewed sexual assault allegations against Cosby, Netflix reportedly postponed the premier. The show was slated to release a day after Thanksgiving. Cosby’s publicist stated that he agreed with the decision.
Also, the declaration by Nielsen to track viewership details of companies like Netflix and Amazon.com in the near future could be held responsible for the share price decline. To date, Netflix had kept all details pertaining to its viewership details concealed from public. Hence, Nielsen’s proposal did not go down well with its shareholders as was proven by the decline in share prices.
Going ahead, we believe the full six episodes of the 30-minute show I'm Sorry You Feel That Way by American stand-up comedian Bill Burr scheduled to be aired on Netflix in 2015 would be a major positive for the company. Netflix has already aired a host of comedy shows this year such as Jim Jefferies’s Bare, Chelsea Handler’s comedy show Uganda Be Kidding Me Live and Chelsea Peretti’s One of the Greats.
Further, another major event to look out for is Netflix’s debut in Australia and New Zealand. The company finally confirmed the rumors about the launch scheduled for Mar 2015. Going by market reports, it is already ramping up promotional activities and has already hired marketing agencies for them.
We believe that an increase in the number of Internet users in Australia and New Zealand and the growing demand for Internet-based video content led Netflix to focus on these markets.
Shows like Marco Polo, BoJack Horseman and All Hail King Julien are expected to be aired post launch. Upcoming series like Bloodline, Daredevil, Sense8 and Grace and Frankie are also expected to attract more viewers to the online video streaming giant, in our view.
Currently, Netflix has a Zacks Rank #5 (Strong Sell).