Tomahawk, WI 9/24/2013 (BasicsMedia) – Netflix, Inc. (NASDAQ:NFLX) has been streaming movies as well as television shows through its Internet subscription services since it was incorporated in 1997. These services allow the company’s clients, essentially its subscribers to watch unlimited television shows regardless of whether they are dog this on their mobile gadgets, computers or TVs sets. Its subscribers in the U.S are eligible to get DVDs of their favorite shows delivered right into their homes as well. The company has reported that its base in Canada has more than doubled in the recent past.

 NFLX Silences All Doubts

 There has always been some measure of doubt regarding the ability of NFLX to make money for investors as it envisaged. The unlimited subscription plan was started in 1999 and the challenge for NFLX was to demonstrate that this was an opportunity which had the capacity to bring in money to investors, after all, rarely will an investor put his money where he is unsure of getting a good return on investment. Perhaps the biggest challenge for Netflix was to ensure that the growth of its subscriber base was good and sustainable, since this is what would bring in money.

 The second challenge was for Netflix to pay close attention to the kind of shows and movies it offered to its clients through this unlimited subscription plan. In the past, the company didn’t give much attention to this requirement and filled its network with all shows as long a I could get its hand on these. However, the recent reports appear to indicate that NFLX has changed this viewpoint. It now promises to be quite selective regarding the quality and kind of shows it takes up and allows its subscribers to watch through their televisions, mobile gadgets and computers.

 NFLX Changes its Business Operations

Netflix has changed the way it runs its business and this has helped it to experience real growth in 2013. It now enjoys more or less the same number of customers willing to pay for the services in the U.S. One of its competitors has been HBO, owned by Times Warner. This company has close to 28.7 million subscribers in the U.S alone. NFLX has seen its user base grow to an impressive 29.2 million monthly payers. This rapid growth is much better than what even the most optimistic Wall Street analysts had predicted and paints NFLX in a positive light.

 However, what NFLX now needs to work on is to improve its operating profit. Quarterly revenue has grown to more than $1 billion, but the profit for the first quarter of 2013 was a mere $2.7 million. What this shows is that the company is losing a lot of money. If it can work on ways of cutting down on costs of operation, it could be more attractive to newer investors. Its operating profits in the U.S has now grown by as much as 20%, but still more needs to be done to ensure that the grow this upwards and positive rather than downwards and negative.

 NFLX still has a good future and I believe it will continue posting impressive results.

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