What’s Driving Netflix’s Growth?

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April 21 (Bloomberg) -- Jon Erlichman examines the numbers behind Netflix’s success and previews the company’s earnings on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)


This is simple when you get down to it.

If they can keep adding users around the globe, then all of the naysayers go away.

It is about subscribers and how many people are using netflix.

The company has 36 million people in the u.s., about 12.5 billion overseas at the end of this quarter -- 12.5 million overseas at the end of this quarter.

This is in line with -- with what is expected.

They have to create compelling original content to keep subscribers coming in.

How much more efficiently are they doing this than let's say, the traditional pay cable tv networks?

This is costly for them, and they have billions of dollars they have had to spend on movies and tv and then doing their own shows like "house of cards," they don't get this easy and they have higher rates than many traditional players.

But if they can find new ways to make money and have new subscribers, going to the markets overseas and toilet the pricing plan and maybe partner with new players, bloomberg reported vodaphone -- one thought, playing with the pricing.

They tried that a year ago and it didn't work.

This could actually increase arises without a backlash?

Let's take a family plan, 12 bucks, $11.99. at my house, we are not doing a family plan.

We have a dollars and sort of share with everybody.

That is because your daughters are 3 and 4. they are watching the kids stuff.

If we can get more people to be paying for the service, this is incremental revenue.

Of the thing i noticed is my television broke and i could not watch the hockey game on nbc, but there it was on the app, the nbc network sports app.

Your world changed my world, it is moving at light speed.

What are they doing to adapt for 2016? all of the big players know that if they can make their content available for all of these devices, everyone is happy.

The pay-tv players are happy because they get to keep them -- if private content is king, i will overtake distribution and just give it to everybody.

That is why ease-of-use is so important.

You talk about authentication.

You pay the cable company and they allow access on every advice.

-- every device.

That is why netflix -- john chachas is with us.

They will have to deal with it.

Television developed a nielsen rating.

They could measure me watching the hockey game.

In some places they can and in some they can't, but the advertising side of this equation has not migrated away from years and years -- because big advertisers like ge and procter & gamble are looking at a nielsen rating while all of us are streaming on the ipad.

Where is the debate right now?

This is the crux of the matter, the ad revenue has not caught up, you were talking about this on "bloomberg west." this is when the advertisers get together and say, this is fine, thank you, traditional tv.

Netflix does not share its numbers of people watching a show because they don't care about advertisements.

And what about "game of thrones," they almost want that theft.

It is easier to access this through hbo go as opposed to tuning in or watching -- they are encouraging the use of this and around the world.

Really and.

Jon erlichman.

"bloomberg west" at 6:00 p.m. p.m., that is twice a day we get jon erlichman.

And that is twice per day we get tom keene, on tv and radio.

Here we have the data check, because you want to know.

S&p futures are up by three, and the bonds and euro and oil are all kind of flattish.

"bloomberg surveillance." good morning, "bloomberg surveillance" worldwide, on apple tv, bloomberg radio plus, and the android -- this is free.

Out on the ipad.

I am tom keene.

We have cristina alesci and adam johnson with us.

Joe biden traveled to kiev and should be there in a bit.

Rush is front and center which suggests sanctions and more possible sanctions.

Alex kliment is a senior fellow at the eurasia group, and john chacha, senior fellow at methuselah advisers.

What do they actually do -- the actual trade is 40 but million dollars -- $40 billion

This text has been automatically generated. It may not be 100% accurate.


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