Netflix (NFLX) started streaming 19 years ago today when it launched its “Watch Now” feature with around 1,000 titles on January 16, 2007. At its inception, Netflix (NFLX) streaming had video quality that was lower than DVDs, and the standard $5.99-a-month disc plan initially bought subscribers just six hours of streaming per month.
Netflix
Of course, the company made a revolutionary transformation by offering unlimited streaming at no additional cost to rental-disc subscribers in 2008, and by 2010 CEO Reed Hastings confirmed the company had evolved from its DVD-by-mail roots. Within another two years, Netflix (NFLX) was producing original content such as House of Cards and Lilyhammer, setting the stage for other streaming players like Apple (AAPL), Amazon (AMZN), HBO (WBD), Hulu (DIS), and Disney+ (DIS). Netflix (NFLX) is now estimated to have more than 315M total global subscribers, although the company no longer reports official tallies.
On January 16, 2007, Netflix’s (NFLX) stock closed at $0.32 per share on a split-adjusted basis. On Friday afternoon, the streaming stock was swapping hands at $88.09 per share.
Looking to the future, Netflix (NFLX) is due to report fourth-quarter earnings next week in what will be closely watched reports in the media sector.
Netflix is expected to post fourth-quarter EPS of $0.55 on revenue of $11.97 billion.
“With much still to prove, we think Netflix is positioning for substantial growth in global advertising, and that should not be overlooked,” said Wedbush analyst Alicia Reese, adding that the firm expects ad revenue to “become Netflix’s primary revenue driver in 2026, with significant opportunities in 2027.”
Seeking Alpha analysts and Seeking Alpha’s Quant ratings consider the stock a Hold, while Wall Street analysts are bullish and have it slotted at Buy.