While Jim Cramer is in San Francisco this week, he has heard about all of the snazzy start-up companies with disruptive technologies that could possibly take over the world one day. But what about a company that is already conquering the globe?
Netflix is the video streaming colossus that not only allows for TV shows and movies to be streamed, but also creates its own original programming. It reported a fantastic quarter in July, with confirmation that it added 3.3 million new subscribers. It is also expanding its international footprint substantially, and Cramer thinks it could even take over the whole world by the end of the year next year if it wanted to.
Cramer had the opportunity to speak with Netflix Chairman and CEO Reed Hastings to discuss the current environment of the Internet, how Netflix obtained rapid success and where it could be headed in the future.
Cramer pointed out that 13 years ago, Netflix traded at just 85 cents a share; it closed at $102 a share on Friday. Hastings explained the fast growth of the company, stating “It’s really the Internet. The Internet is transforming so many sectors of our economy, and we are Internet TV; and that sector has grown from very small 15 years ago to starting to be significant now.”
The end of TV?
In fact, Hastings predicted that in the next 10 to 20 years, all of television will be on the Internet. He added that he was willing to bet that the Internet would be a fast growing industry when he first started Netflix because he saw the incredible consumer experiences that the Internet allowed.
Hastings attributed the success of original programming such as “Orange is the New Black” and “House of Cards” to Netflix’s powerful data analytics.
“We are just a learning machine. Every time we put out a new show, we are analyzing it, figuring out what worked and what didn’t so we get better next time,” Hastings added.
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SOURCE: CNBC, Abigail Stevenson