Can Netflix Beat the Competition?
A report issued by the research firm NDP has revealed a trend that could significantly boost the growth of Netflix’s (NASDAQ:NFLX) streaming-video service. According to the data, more than half of consumers between the ages of 18 and 24 with an Internet-connected TV use it to watch Netflix.
The author of the report, Device Research Director John Buffone, noted that the “inherent success of Netflix streaming can be attributed to its content library and TV centric strategy initiated in part by the Roku launch in 2008.”
Success is a word that was tacked onto Netflix by commentators and analysts during the first few weeks of 2013, after the company’s stock price soared over $100 briefly for a few days earlier this month. Janney Capital analyst Jon C. Ogg contributed to the positive assessments of Netflix, raising his rating on the company from “neutral” to “buy” and increasing the price target to $129. He based his upgrade on the fact that “competition has not yet materialized to the extent that it poses significant near-term risk,” reported Fortune.