Netflix (NASDAQ:NFLX) commits to investing $2.5 billion in South Korean content in the next four years. The announcement came after the streaming giant’s CEO, Ted Sarandos, met with South Korea’s President Yoon Suk Yeol in Washington.
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South Korean content has gained global popularity, with the movie Parasite winning an Oscar. Moreover, Netflix has seen massive success with Squid Games, which became an international hit.
The company benefits from its focus on local language investment, which drives its fan base. During the Q1 conference call, NFLX said that The Glory, which is from Korea, is its fourth biggest non-English launch ever.
With increased competition in the industry, Netflix is focusing on better content and execution to drive its success. Thanks to its solid content, Netflix added 1.75 million paid subscribers in Q1. Moreover, its earnings exceeded the Street’s forecast.
Netflix is also preparing for a wider rollout of its paid sharing offerings across all its target geographies. The company’s Q3 financials will likely benefit from the crackdown on password sharing.
What’s the Prediction for NFLX Stock?
NFLX stock has gained over 52% in one year and outperformed the broader market averages. It is focusing on driving its paid member base through solid content and ad-supported plans and expanding margins. However, as the company is in a transitional phase, analysts maintain a cautiously optimistic outlook.
NFLX stock has received 17 Buy, 13 Hold, and two Sell recommendations, translating into a Moderate Buy consensus rating. At the same time, analysts’ average price target of $367.52 reflects 11.7% upside potential.
