How is Netflix Saving Data for Its Users?
In March, Netflix stated that it’s capping its video streaming at 600 Kbps (kilobits per second) to “protect consumers from exceeding mobile data caps.”
As of May 22, Netflix’s (NFLX) trading price was $92.49.
On May 23, 2016, Netflix (NFLX) was trading 5.6% below its 100-day moving average.
Netflix’s business model could be hampered by low Internet penetration or low usage of Internet-connected devices in international territories.
For fiscal 2Q16, Netflix (NFLX) has forecast net additions of 2 million international subscribers.
On May 22, Netflix’s stock price closed at $92.49. The company’s stock price has fallen by 20.3% year-to-date and 3% in the past month.
Netflix and Amazon’s Prime Instant Video service could be forced to ensure that 20% of their content catalogs consist of European content.
Netflix started offering 4K content for UHD (ultra high-definition) television sets in the second quarter of 2014.
Netflix (NFLX) subscribers who have been tethered to the $7.99 HD (high definition) streaming plan will be grandfathered at that plan until June 16.
Virtual reality (or VR) started to emerge as a possibility soon after Facebook (FB) acquired Oculus VR, a leader in immersive virtual reality technology, for $2 billion.
WhatsApp’s strong presence in direct messaging and international markets makes it a highly strategic investment for Facebook (FB).
In early 2014, Facebook (FB) announced the acquisition of WhatsApp for a jaw-dropping $19 billion in cash and stock.
Instagram is still growing its user base and engagement at a rapid pace and is immensely popular among teenagers.
With more than 400 million monthly active users (or MAU), Instagram now has 200,000 advertisers.
Facebook acquired Instagram, a photo-sharing app, in 2012 for approximately $1 billion in cash and stock.
Facebook (FB) hasn’t given a specific monetization timeline for Messenger. However, we believe that the company is slowly getting closer to monetizing its Messenger app.
Homegrown Facebook (FB) Messenger is an instant messaging application that enables people to connect, and also enables businesses to engage with customers seamlessly and securely.
Facebook (FB) generates strong margins, as its business is a fixed cost model, which means the company incurs low marginal costs for each new revenue dollar.
Average revenue per user (or ARPU) is a key metric for Internet companies, as it helps in analyzing how well a company can monetize its user base.
Facebook’s products and tools enable advertisers to leverage the company’s unique combination of reach, relevance, social context, and engagement.