Key Points
Netflix (NASDAQ: NFLX) has seen substantial growth over the past decade, outperforming the S&P 500. An investment of $500 in Netflix in 2015 would be worth approximately $3,834 as of December 18, while the same investment in the S&P 500 would only have grown to about $1,659.
As of the end of 2024, Netflix is projected to have 301.6 million subscribers, nearly 100 million more than its closest competitor, Amazon Prime. A recent Pew Research survey indicates that 83% of Americans now use streaming services, solidifying Netflix’s leading position in the market.
Netflix also boasts a low churn rate of 1% to 3%, well below the industry average of 5%, which affords the company greater flexibility in pricing and subscriber retention. This unique market advantage has positioned Netflix favorably for future growth.
