Netflix Inc Financial Performance
There have been several observations about Netflix’s sales over the previous three years. According to the data provided regarding Netflix’s financial statements, in 2014, the sales were 5,504,656 dollars, and in 2015, the sales were 6,779,511 dollars. According to the figures, there was an increase of approximately 23.16%. In addition, in 2016, the sales were recorded to be 8,830,669, which is an increase from the sales recorded in 2015. The percentage increase in 2016 was approximately 23.23%, thus indicating that in 2016, the increase was slightly more than in 2015. Therefore, Netflix’s sales and subscriber numbers have consistently increased over the years as the company has invested in producing its own original content and expanding its reach globally.
Further, given the above data, one can make future financial performance predictions for Netflix. Notably, based on the observation, it is assumed that subscriptions must have increased throughout these years. This means that the company’s growth possibilities are predicted to be greater than 30.25 percent in the upcoming years. The non-financial variables that influence the projection include the rising popularity of the media surface provider. Netflix has managed to be the leading streaming provider, which gives it a greater growth potential (Hiller 69). In addition, the company continues to adopt new technologies as it advances so that it can remain relevant (Hiller 70). Therefore, there are possibilities for more opportunities to boost sales for the company to succeed and develop further. Moreover, it can be expected that Netflix will continue to be a major player in the streaming industry. However, it will need to remain agile and adapt to changing market conditions to stay ahead of the competition.
Work Cited
Hiller, R. Scott. “Profitably bundling information goods: Evidence from the evolving video library of Netflix.” Journal of Media Economics 30.2 2017: 65–81.
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Question 
Netflix Inc Financial Performance
This course discussion aims to apply what you have learned after reading the chapter material and reviewing the PowerPoint.
Presentations. Keep in mind that this discussion question will help prepare you for homework and future assessments, so it is important that you understand the information and actively participate in discussions. You may also have to research outside course-provided material to supplement your learning and enhance your understanding.
Discussion Question Requirements:
The following information was taken from Netflix’s financial statements.
Sales
NETFLIX, INC.
Consolidated Statement of Operations For the Years 2014, 2015, and 2016
Dec. 31, 2014 $5,504,656*
Dec. 31, 2015 $6,779,511
Dec. 31, 2016 $8,830,669
*Dollar values are in thousands of US dollars.
Source: United States Security and Exchange Commission. “Netflix, Inc. Consolidated Statements of Operations.”
www.sec.gov
For Netflix, sales are the product of the number of subscribers and the price charged for each subscription. What observations can you make about Netflix’s sales in the previous three years? Given this data, provide any predictions you can make about Netflix’s future financial performance. What nonfinancial factors influenced that prediction?