In a program on Bloomberg, expert Paul Kedrosky talked about Netflix, Inc. (NASDAQ:NFLX). The company is set to announce its third quarter earnings after market close on Wednesday. One of the most important push for Netflix, Inc. (NASDAQ:NFLX) in the coming days is its movie business. So far, Netflix, Inc. (NASDAQ:NFLX) has been producing TV shows. House of Cards is an exclusive production by the company which has got much praise around the world. Recently, Netflix, Inc. (NASDAQ:NFLX) has decided to partner with Adam Sandler for some movies. Experts in the program talked about company’s CEO, Wilmot Reed Hastings and his strategies.
Kedrosky said that Hastings has seized the TV series domain. The business model of Netflix, Inc. (NASDAQ:NFLX) rightly serves the increasing demand of streaming around the world. He thinks that people are putting recording devices in the back of theaters in order to roll out the content for viewers globally before the time of TV release. The world of torrents is going crazy about pirated downloads because when people see free content, they don’t opt for paid content services. This is a threat for Netflix.
Answering the question about expense of making movies and how Netflix, Inc. (NASDAQ:NFLX) will handle this problem, Kedrosky said that Netflix will craft a new model of subscription and pricing in order to cover up the costs. There will be a new pricing package for the movies. If the subscribers are happy with Netflix, Inc. (NASDAQ:NFLX) in movies, there will be no problem for the company in the longer run.
Netflix, Inc. (NASDAQ:NFLX) has the strong grip on the complete market of millennials for TV content. The other streaming services don’t have the strong user base as Netflix. The company has a growth potential in the future.
Carl Icahn‘s Icahn Capital Lp hold around 1 million Netflix, Inc. (NADSAQ:NFLX) shares.