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Netflix to benefit from first mover advantage and strength of original content

Netflix has roughly 5,800 titles on its streaming service and will spend US$10bn to US$12bn on content this year
Netflix
"Inertia tends to benefit early movers," the Barclays analyst said

UK banking giant Barclays reckons Netflix Inc (NASDAQ:NFLX) could become one of the most successful media companies on the strength of its original content.

Initiating coverage of the media streaming pioneer, Barclays has attached an “overweight” rating to the stock, and has predicted strong growth in revenue and subscribers over the next few years.

READ: Content is king at Netflix as streaming giant looks to raise US$1.6bn in fresh debt

“If subscriber growth is faster than content cost growth over time, it could become one of the most successful media companies,” suggested analyst Kannan Venkateshwar.

The analyst has set a price target of US$245 for Netflix. In pre-market trading, the stock was up 1% at US$214.55.

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