March 2, 2018
March 2 was a good day for Netflix shareholders. The SVOD pioneer’s stock reached an all-time high of $301.62 per share – after teasing the benchmark earlier in the week.
The 3.7% stock gain on the day resulted in $130.6 billion market capitalization – up 50% from $87.01 billion on Jan. 2.
Market capitalization is based on share price and number of shares outstanding. It generally represents the market’s view of a company’s stock value and is a determining factor in stock valuation.
In other words, Netflix is on fire. It is outspending all other media and streaming companies on original content, including feature-length movies.
Pay-TV operators that once shunned Netflix, believing TV Everywhere could neutralize the SVOD threat, now embrace the behemoth offering their subscribers direct access.
Indeed, Britain’s satellite operator Sky went one step further this week: offering Netflix as a quasi-channel, including side-by-side content selections.