Good Show! UK Watchers Stream To Netflix

Netflix Inc (NASDAQ: NFLX) had a jolly good showing in a survey of United Kingdom users that found record high usage and strong satisfaction.

Combined with still-positive American results, the positive news is keeping RBC bullish on the stock.

The Analyst

Mark Mahaney reiterated an Outperform rating on Netflix with a $450 price target.

The Thesis

The British survey results are driving the optimism.

The survey showed for the first time that Netflix is the top website for watching TV or movies in the U.K., Mahaney said in a Friday note. (See his track record here.)

Penetration set a record, with 67% of Brits saying they watch Netflix, up from 56% a year ago.

No Netflexit Coming

British viewers may be leaving the European Union, but they won’t be leaving Netflix: seven in 10 respondents to the RBC survey said they’re unlikely to cancel. And 80% of subscribers said they’re either extremely or very satisfied.

American Results

Results were largely positive in the United States as well, with quarter-over-quarter and year-over-year increases in penetration. In the States, 64% of respondents watch Netflix, beating out Amazon.com Inc. (NASDAQ: AMZN) and Walt Disney Co. (NYSE: DIS)’s Hulu.

More than six in 10 Netflix customers are extremely or very satisfied, and only 12% of subscribers say they’re very or extremely likely to cancel, despite a recent price increase.

Big Shows

“Stranger Things” is the most popular show right now on Netflix, according to the survey, followed by “The Office” and “Orange is the New Black.”

Netflix’s second-half content slate is “arguably Netflix’s strongest to date,” Mahaney said, citing re-releases of “Stranger Things,” “Orange is the New Black” and “13 Reasons Why,” several popular international series and two much-awaited original films, “The Irishman” and “6 Underground.”

Global Interest

The appeal of Netflix is also spreading, the analyst, citing Google search trends that show Netflix at a record high in several countries, including India.

Price Action

Netflix shares were up 0.8% at $293.76 at the time of publication Monday.

Related Links:

Piper Jaffray: Netflix Subscriber Survey Shows Strength In Face Of Competition From Disney

Why Strong Subscriber Growth for Hulu, Netflix Bodes Well For The Sector

Photo courtesy of Netflix.

Latest Ratings for NFLX

Jul 2019		Maintains		Buy
Jul 2019		Reiterates		Outperform
Jul 2019		Maintains		Underperform

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

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