Netflix extend online overseas

Netflix CEO Reed Hastings spoke at the unveiling of the iPhone 4 by Apple CEO Steve Jobs at Apple Worldwide Developers Conference in San Francisco, California, in June last 7, 2010 file photo.

Credit: Reuters/Robert GalbraithBy Jennifer Saba

NEW YORK | Tue, July 5, 2011 3: 00 pm EDT

NEW YORK (Reuters) - Netflix Inc. extends its video service 43 countries in Latin America and the Caribbean Online, sending its shares to a record level.

It's incursion Netflix outside the United States second. He began to offer its services to the Canada last year.

Netflix, which offers broadcasts of TV and films on the Internet and DVD rental by post, look for new subscribers as competitors such as Apple, Google and Hulu are moving the lawn to the Netflix.

The company has been widely should announce plans for an international moving and reported that he could grow in at least two markets per year from 2012.

"I think generally people expect a launch in a country, and it's a whole region," said Atul Bagga, analyst think equity. "I think that there is plenty of room for growth in these markets."

The Latin American market has an estimated user of 215 basis, from the United States million, with approximately 245 million dollars, Bagga said.

Netflix said Tuesday that subscribers to the Mexico, Central America, South America and the Caribbean will be able to access entertainment and cinema Spanish, Portuguese or English later this year.

Netflix declined to comment on further expansion.

In a letter to investors in April, Netflix said that there should be $ 50 million to $ 70 million in operating losses in the second half of the year with his second international expansion.

Netflix shares have had an incredible race in recent years - to about 1,000 percent since 2008. The last few months, some investors bet that the stock will fall after its trajectory resembling a rocket.

Which would also explain instead of sharing today, said Bagga on investors in the stock pile to cover their short position.

Once considered a friend to the studios of television and film, media conglomerates have fretted their venerate yet on the popularity of Netflix because it threatens the traditional suppliers of cable and satellite.

There is concern that consumers will drop expensive cable packages - called cord cutting - cheaper services offered by companies such as Netflix.

Netflix has more than 23 million subscribers. In contrast, Comcast, the cable no. 1 at the United States operator, was 22.8 million subscribers to 31 March.

Netflix shares reached a record level of $291.23 and increased by 8% to $289.48 in afternoon Nasdaq trading.

(Reporting by Jennifer Saba in New York and Lisa Richwine in Los Angeles; editing by John Wallace, Derek Caney, Dave Zimmerman)

Netflix earnings on the Plan of expansion in Latin America, Caribbean - Bloomberg

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

Wall Street flat, but Netflix contributes to Nasdaq

Traders work on the floor of the New York Stock Exchange on June 29, 2011.

Credit: Reuters/Brendan McDermidBy Ryan Vlastelica

NEW YORK | Tue July 5, 2011 3: 14 am EDT

NEW YORK (Reuters) - Stocks were largely flat in a session thinly traded Tuesday as investors digested the gains last week, the best week for equities in two years, while the strength of Netflix has helped lift the Nasdaq.

Shares rallied for five consecutive days pushing the S & P 500 up 5.6%, lift of weakness during the past two months. But the nagging questions about the strength of the economic growth of the U.S. debt limit, the summer might be a rough.

"It is no real surprise that the market now has a more difficult time get excited, in view of the big week us was just," said Hayes Miller, Chief based in Boston, distribution of assets in North America to Baring Asset Management, which oversees about $ 50.6 billion.

Day volume was light, a trend which saw also immutable. The anemic action could exacerbate fluctuations in stocks in non-agricultural week in holiday-shortened, especially with payroll report Friday that on the horizon. Payroll data are intended to show the tepid job creation in June. Markets were closed Monday for the Daholiday of American independence.

"The markets are in a very volatile state right now," which makes a market difficult to make much progress, Miller said. "We will go back and forth with strong weeks as lower last week as we had before that."

The Dow Jones industrial average.DJI was 13.96 points or 0.11%, to 12,568.81. Standard & Poor 500 Index.SPX decreased 1.90 points, or 0.14%, to 1,337.77. The Nasdaq.IXIC Composite index increased increased 7.20 points or 0.26%, to 2,823.23.

Last week, is moving to avoid a crisis of debt in Europe and surprisingly given strong regional business helped lift some of the sadness on Wall Street.

The Nasdaq has been thrown by Netflix Inc (NFLX).(O), which rose by 7.7% to $288.52 after he said that it was expanding its video service online to 43 countries in Latin America and the Caribbean.

New orders received by the plants of U.S. bounced back in may, boosted by demand for transportation equipment, showed a Government report. The increase of 0.8 per cent was slightly below economists predictions.

Stocks were little affected by the data after the move of the last week and some traders may be Paris that the S & P rally is near end.

Important August put the spread has been reached in the S & P 500 Index.SPX Tuesday and was followed by the purchase of a heavy August 120 $-$ 127 put the spread on the American S & P 500 (spy.) Trust(P), said Frederic Ruffy, WhatsTrading.com options strategist.

Morgan Stanley, Adam Parker, U.S. Equity Strategist said lower growth concerns and inflation are set to lead the S & P 500 price-earnings ratio to 10 in five years, as anxious investors keep a lid on actions.

In the recent liquidation, P/E ratio, or that investors are willing to pay a dollar of earnings, fell to 12.7 to 13.5, according to Morgan Stanley. The note was dated July 4.

Crude oil future U.S. sweeps 2.4 97.23% $ per barrel after Barclays Capital raised its forecasts for the goods in 2012, index S & P of lifting power.PSE 0.7 per cent. Marathon Oil (MRO).(N) has increased from 3.5% to $34.15.

In the news of the company, Southern Union Co (SUG.)(N) advanced 2.6 41.40% $ after the operator of pipeline energy transfer Equity LP (been.)(N) has raised its bid to buy its rival by 21% to approximately $ 5 billion, outbidding 4.9 billion dollars bid offer Williams Companies Inc (WMB)(N).

Immucor Inc. (BLUD.)(O) sudden 30.3% to $27 after the diagnostics firm said it has agreed to be acquired by private equity group TPG Capital for an equity value diluted $ 1.97 billion.

(Reports by Ryan Vlastelica;) (Editing by Jan Paschal)