Boston, MA 06/04/2014 (wallstreetpr) – Netflix, Inc. (NASDAQ:NFLX)’s international growth appears compelling and it is just a matter of time before the company starts generating huge subscription revenue.
According analysts at Oppenheimer, Netflix will this year grow its international subscription numbers by 55 percent over last year’s figures. That means that the video streaming company will conclude 2014 with 17 million subscribers abroad. The company had 13 million subscribers at the end of the March quarter.
As if that is not enough, Oppenheimer believes that Netflix, Inc. (NASDAQ:NFLX) will continue growing internationally. As such, Netflix is expected to attract 70 million international household by 2020, and that will suggest 30 percent growth rate in annualized basis.
The projections where provider by Oppenheimer researcher Jason Helfstein, who also reiterated an “outperform” rating in the stock of Netflix, Inc. (NASDAQ:NFLX) and updated the stock to $500, up from $435.
Eye on the international market
Netflix, Inc. (NASDAQ:NFLX) is eying opportunities in the international markets. The company recently announced plans to expand operations in continental Europe where it has earmarked six countries to start with this year. The company intends to take its video streaming business to France, Germany, Belgium, Luxembourg, Switzerland and Austria this year. It expects to capture more market in the region over the next couple of years.
In the six countries combined, Netflix targets a population that is about half the U.S. Although the company’s expansion in U.K this year was expected, Netflix surprised market watchers with its move to target as many as six countries this year.
Preparing for big takeoff
As if to give credence to its big takeoff abroad, Netflix, Inc. (NASDAQ:NFLX) this week announced changes in its communications desk. The company announced Anne Marie Squeo as its new director of corporate communication, taking over from Joris Evers who is moved to Europe as Vice President of Communications. Ms Squeo joins Netflix from 30 Point Communications, where she was the managing director of corporate communications.
