Netflix will begin offering the video stream to customers in 43 countries in the region this year, the Los Gatos, California - based company said in a statement. Photographer: Jin Lee/Bloomberg.Netflix Inc. (NFLX), rental of DVD and movie-streaming service, has increased most in addition to three months in the Nasdaq trade after the announcement of plans for expansion in Latin America and the Caribbean.
Netflix grew from $20.82, or 7.8%, to $288.81 at 1: 41. New York time, the biggest intraday gain since March 15. Shares of the company based in Los Gatos, California had risen to 53 percent this year before today.
Netflix begin streaming video in 43 countries in the region this year, including the Mexico, according to a statement today. Society's need to expand globally of sustained growth and generate funding for additional film rights.
"This announcement significantly expanded total addressable market of Netflix in Latin America and probably makes our subscriber end 2012 42.7 million conservative estimates", Anthony j. DiClemente, an analyst with Barclays Capital in New York, wrote today in a research note. It has an "overweight" rating on the shares.
2015, Latin America will be the most rapid growth in broadband connections that are needed for video services online such as Netflix, according to a report by November 2010 by consulting firm Analysys Mason in London.
Countries provide potential access Netflix 325 million households, according to George Askew, an analyst with Stifel Nicolaus & Co. in Washington that the stock of rates "hold." The service will be offered in Spanish, Portuguese or French, said Netflix.
Analysts expressed concern over the rising costs of Netflix content, including the potential price to renew an agreement continuous with the cable networks from Liberty Media Corp. Starz. The existing agreement of Starz costs about $ 25 million per year, Rich Greenfield, analyst, BTIG LLC, estimated in January.
On 1 June, the CEO Reed Hastings said he "would not be shocking" to pay as much as 300 million per year to renew this agreement.
"We recognize the concern of the investor on rising costs of content, but we believe that the Subscriber viral growth, international expansion and acquisition of content disciplined mitigate this risk," wrote DiClemente.
Netflix subscribers to the United States and the Canada pay $7.99 per month to watch TV shows and movies via the Internet. Some plans allow customers to receive DVDs by mail. Netflix has started allowing U.S. customers watch videos online in 2007 and began to offer the option to the Canada last year.
United States-centric
31 March 97 per cent of its customers was located in the United States, according to data compiled by Bloomberg.
Society is expanding in many countries both to obtain the scale necessary to pay for the Hollywood studios and other streaming content providers the old rights of films and television shows, Tony Wible, Janney Montgomery Scott analyst, said in an interview.
To support the growth of 30%, Netflix will have to reach 59 million subscribers in the world at the end of 2013, more 23 million today, said Wible, who has a rating of "sell" on the stock.
"To reach this point of reference, you have to 53 million in the United States and about 6 million internationally," said Wible.
Netflix, stated on April 26 its international thrust to the United States will give rise to international operating losses of as much as 70 million in the second half, maximum of $ 50 million, seen above.
To contact the reporters on this story: Cliff Edwards in San Francisco at cedwards28@bloomberg.net; Tracer Zachary in New York at the ztracer1@bloomberg.net
To contact the responsible editor of this history: Anthony Palazzo at the apalazzo@bloomberg.net
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