Netflix Shares on the Upswing

By Richard Gibson
Jan 27 2011

Netflix, the largest movie rental company in the US, is enjoying an upswing in share prices today after they announced that they have signed 20 million subscribers.

Netflix was dealing with a downturn over the last several months but that has since been attributed to the cost of implementing their streaming only service throughout the US and Canada.

These days, thanks to the streaming service, the company is looking at a bright future, with higher stock prices and increased revenue. Still the company is facing more competition in the world, something that they are not used too.

While Redbox is dealing with their own brand of issues, notably the fact that they have to wait 30 days before releasing any new films, Netflix is pulling ahead. But according to a new report, more people are switching to the speed of Redbox ahead of Netflix despite not being able to get the new movies soon after release.

Netflix plans to increase their revenue by bulking up their streaming service. At this time most customers report just 100 movies and television shows available on the streaming service. Netflix is slow to upgrade this feature because it requires permission and licensing from the companies that produce the films.

Nonetheless, Netflix remains the global leader in movie rentals at this time. They earned the top spot when Blockbuster announced that they would seek bankruptcy protection to stave off the multitude of creditors that are demanding payment while the company sees shrinking profits.