Netflix ($NFLX) Continues to Gain: Will it Sustain the Momentum?
Video will comprise 70% of the total mobile traffic, up from 50% estimated earlier. Though Alphabet, Inc.’s [stckqut]GOOG[/stckqut] YouTube will account for 70% of the total video traffic in most mobile networks, Netflix [stckqut]NFLX[/stckqut] has the potential to reach 20% in the regions it operates.
Another report that got Netflix shares soaring this week came from “Land Down Under”. Per a report from the Australian Communications and Media Authority, Netflix attracted 2.5 million subscribers in the first six months of 2015, making a grand entry in Australia.
Per the report, nearly 17% Australians or 3.2 million consumers used streaming services in the first six months of 2015, of which a major chunk (78%) belongs to Netflix Australia. For the seven-day period prior to Jun 2015, 2.2 million consumers subscribed to streaming services, of which 88% used Netflix Australia, outpacing local streaming service providers like Stan, Presto and Quickflix.
We believe Netflix has tremendous growth opportunities. The company is aggressively expanding internationally, especially in emerging economies where the potential for subscriber growth is high. The company plans to cover 200 countries by 2016. Currently, it is available in over 50 countries apart from the U.S., including 13 European nations. Netflix entered Canada in late 2010 and has since expanded its business to Latin America & the Caribbean (Sep 2011), the U.K. and Ireland (Jan 2012) and the Netherlands (Sep 2013). In 2014, Netflix expanded its services to six new European countries — Germany, Austria, Switzerland, France, Belgium and Luxembourg.
Source: Netflix Continues to Gain: Will it Sustain the Momentum?
Apple Inc. ($AAPL) Wants To Be Your Bank, And The Big Banks Should Be Worried
Whether through its Apple Pay mobile wallet or a new, person-to-person payments network reportedly in the works, Apple [stckqut]AAPL[/stckqut] wants to be at the center of consumers’ financial lives in the same way it has changed the way people communicate, listen to music and, if other ventures are successful, watch TV and even drive. Given Apple’s track record of disruption, the company’s plans could put the traditional financial services industry on the defensive.
The gadget maker is said to be in talks with several major banks to launch a personal payments service that would allow, say, friends to split a check or emigrants to send money back home via their iPhones. It would compete with existing services like Square, Android Pay or Venmo, which is operated by PayPal [stckqut]PYPL[/stckqut]. PayPal has seen its share price tumble since reports about Apple’s initiative emerged.
The Wall Street Journal said that Apple may launch the venture in partnership with JPMorgan Chase [stckqut]JPM[/stckqut], Capital One Financial Corp. [stckqut]COF[/stckqut], Wells Fargo [stckqut]WFC[/stckqut] and U.S. Bancorp [stckqut]USB[/stckqut].
The service could be a boon for those financial institutions in the short term. Although they would have to cede a portion of so-called interchange fees to Apple, likely about 15 percent, they could make up the difference in volume if an Apple-branded service encourages a spike in electronic payments. But longer term, market watchers say, the banks risk becoming an anonymous transaction engine rather than the all-encompassing service providers that currently play a central role in consumers’ financial lives.
Source: Apple Inc. Wants To Be Your Bank, And The Big Banks Should Be Worried