In a program on CNBC, Mark Cuban, Dallas Mavericks owner talked about the reason behind his big buying decision about Netflix, Inc. (NASDAQ:NFLX) stock. Cuban thinks that Netflix, Inc. (NASDAQ:NFLX) is going to be the leader in the content business in the US and beyond. There is a very little content production in the US which is directly or indirectly not linked with Netflix.
“When you talk about media, when you talk about the future of television, when you talk about over the top, when you talk about content, the one company that always comes up is Netflix, Inc. (NASDAQ:NFLX),” said Cuban.
Cuban thinks that Netflix, Inc. (NASDAQ:NFLX) has also a very important role to play in the content distribution apart from content production. He thinks that there is no technology company which does not face any problems and bumps in the road to success. Netflix, Inc. (NASDAQ:NFLX) is no exception but the company is smart and knows how to tackle the hard times. The pricing model of Netflix, Inc. (NASDAQ:NFLX) is not so hard to make it lag in the completion, Cuban said. He thinks that subscription numbers of Netflix, Inc. (NASDAQ:NFLX) will not go down in the future because of the price.
Netflix, Inc. (NASDAQ:NFLX) is paying a 140% of production costs and has a lot of back-ups. Cuban said that the key factor for Netflix is the quality content like House of Cards and other TV shows that went popular.
Netflix, Inc. (NASDAQ:NFLX) is expanding its subscription base in Europe and Australia. Recently, the stock also experienced a great surge in the market but on Friday, the stock went down drastically. Despite of this tumble, Netflix is attracting a lot of investors in the US markets.
Carl Icahn‘s Icahn Capital Lp hold around 1 million Netflix, Inc. (NADSAQ:NFLX) shares.