Netflix Can Still Outperform In 2014

Netflix (NASDAQ: NFLX  )  has been firing on all cylinders domestically as of late and strengthening its position internationally as well. The company has more than 40 million global subscribers and numerous opportunities for expansion. Its current earnings do not justify taking a position unless the company can continue to not only meet but to beat analyst expectations. However, Netflix can accomplish this in numerous ways. Its international presence will become an asset as the market matures. Having made history at the Emmy awards, Netflix is poised to continue releasing original content. Given its deal with Disney, it appears as if the company's future is bright. Here are four key ways the company will continue to expand both abroad and domestically. 

Acquiring global content
Although it allowed its distribution deal with Viacom to expire, Netflix plans to replace it with content from Disney. Also, Netflix added a lot of content for its Canadian market. It recently included Canadian shows from the Canadian Broadcast Corporation. It struck another deal with Comcast's NBC to add a number of popular films and TV shows for the Canadian market. Additionally, Netflix is always striving to increase its content for existing subscribers. It recently introduced a cheaper standard definition streaming plan for them.

International expansion
Netflix is trying to gain a foothold in international markets. Following its humble beginnings as a strictly U.S. based company, Netflix is currently available in numerous countries. International customers increased by 229.4% from 2011 through 2012. The same phenomenon is taking place in 2013. The rationale behind this is that Netflix is hoping its international presence could become an asset as the market matures. The company is essentially foregoing profits now so that it can reap larger returns in 2014 and beyond.

Investing in a large fan base
Netflix has proven that it can produce original content . This is a key factor for Netflix on a long-term basis. The company launched the season 2 of an original, Lilyhammer, in mid-December. Netflix will also air House of Cards in early 2015. Having made history at the Emmy awards with a win for an Internet-delivered series, Netflix is set to continue launching original content for some time. The idea of developing original content will pave the way for future price increases.

Well ahead of rivals
Amazon
(NASDAQ: AMZN  ) has been silent on the number of subscribers it has for Prime Video. However, it recently unveiled a number of original shows. It also increased the minimum price for free shipping to encourage millions of its shoppers to sign up for Prime Video. Despite this, Netflix is ahead of Amazon in the Internet video space.

AMC (NASDAQ: AMCX  ) built up a large audience with Walking Dead and Breaking Bad via video-on-demand. However, not all of AMC's shows have been crowned with success. AMC dropped The Killing at the end of season 3 and cut Low Winter Sun after its first season. AMC decided on a cutback because ratings were below expectations.

Bottom line
Netflix is doing a fantastic job of investing so the company can continue to grow in 2014. Its international presence will become an asset as the market expands. Having made history at the Emmy awards with its original content, Netflix is poised for further success. Finally, given its arrangement with Disney, the company will continue to grow its revenue. Despite its meteoric share price rise this year, Netflix is worth taking a closer look by Foolish investors. As always, Foolish investors should do their own research before making any investment decisions. 

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