Viewers’ habits could suffer important modifications now that Netflix has entered the stage of online streaming technology. According to the Associated Press, Netflix registered 1 billion hours of monthly video streaming since its launching.
Judging by the looks of Netflix’s reports, it seems like online streaming websites could replace regular DVDs and even television channels. Surprisingly many people have used Netflix to watch movies last month. Numbers have shown that Netflix registered 1 billion hours of video streaming in the past month and they could do a lot better in the following period due to high-speed Internet connections and high-powered mobile devices.
Netflix’s CEO, Reed Hastings made the announcement on Tuesday, one day after the company released a report in relation to the future evolution of the company. The favorable situation has encouraged businessmen to invest in the video streaming website; as a result, Netflix’s stock registered a 6-percent growth on Tuesday.
Despite the recent increase, Netflix’s financial situation is still troublesome. The company suffered a major decrease last fall and they are trying to bring stock prices to the same level it used to be last summer. On Tuesday, shares gained $4.19 closing at $72.04. The figures are, however, small when compared with the $305 the company registered last summer, in July.
Netflix aims to revolutionize the viewing system and they seem to succeed in doing so. The success of their streaming platform has both positive and negative consequences for them. If viewers choose to watch movies through their Internet program, their DVD-by-mail rental service could be phased-out. Nevertheless, the executives think this is the best move to make at present because their previous service has become completely obsolete. In addition, they will get rid of mailing costs and they will be able to deliver the videos in a shorter period of time.
The Internet company has been trying to convince customers to use their video streaming services by offering a wider range of movie titles. The report proves that their objectives have been partially accomplished; therefore, Netflix will continue to buy even more movie licenses, even if this will prevent them from registering profit this year.