Hit TV series and Emmy nomination help stock gains
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E-mail CNTV, July 24, 2013
Earlier this year, internet media provider Netflix unveiled its first original television series called "House of Cards."It proved to be a hit with critics and the viewers. Since, Netflix has churned out more original shows.
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Earlier this year, internet media provider Netflix unveiled its first original television series called "House of Cards." [File photo] |
And now, they've even picked up some prestigious U.S. award nominations.
40 Emmy nominations. That's the tally for the four shows created by Netflix. The company also made history for being recognized by U.S. television's most prestigious award so quickly.
Perennial Emmy favorite HBO may have gotten more nominations, but it took them a lot longer.
Netflix shows like "Orange is the New Black" - and especially "House of Cards" starring Kevin Spacey - were helped by terrific reviews.
And a big year for Netflix shareholders. The stock is 2013's best performer among the S&P 500 index.
With a price tag of 100 million dollars for two seasons of House of Cards, creating original content hasn't come cheap. That's been a concern, but based on some calculations Netflix has already made its money back by adding around three million subscribers in the first quarter
Investors also have been skeptical of the Netflix strategy to release all episodes at once, allowing for binge viewing. The worry was that viewers would watch the series and then cancel their subscriptions.
But Standard & Poor's equity analyst Tuna Amobi says Netflix's gamble seems to have paid off.
While investors and critics seem to be over the moon about Netflix's original content strategy, cable companies are less enthused. That's perhaps because they have the most to fear from a successful Netflix. At 9.99 a month for a Netflix subscription - versus an ever rising cable bill - Netflix looks like an affordable way to get quality content.
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