A new report by RBC says Netflix’s subscriber base will double within the next decade. RBC predicts the streamer will reach 500 million subscribers by 2030, up from the 193 million it has today. That’s in part due to the rising growth Netflix has seen globally. The video service currently holds 29% market share of global fixed broadband households across the world with the exception of China, a percentage that’s likely to rise to 57%.
Naturally, these high projected numbers have caused Netflix stock to skyrocket. RBC analyst Mark Mahaney raised his price target by 15% to $610 a share, saying Netflix “has achieved a level of sustainable scale, growth, and profitability that isn’t currently reflected in its stock price,” Mahaney said. “We also view Netflix as one of the best derivatives off the strong growth in online video viewing and in internet-connected devices.”
While these projections look promising, Netflix’s user’s satisfaction was surprisingly down to 65%, down three points from May. RBC’s survey of US Households also showed 66% say they watch the streaming service, down 2% from the previous quarter.
However, Netflix is doing well internationally. It was recorded as the most popular streaming service surveyed in the UK with views from respondents up 6% from this time last year. The streaming service is also booming in India, with 49% of subscribers also subscribing to Netflix Mobile plans.
It’s hard to know if these predictions a decade out will come true as 100% accurate. After all, it’s difficult to take into account all the variables that could change within 10 years. guaranteed, no one saw a global coronavirus pandemic coming for 2020 to make media consumption surge. But it is interesting to hear analysts’ predictions provided everything goes as planned.
“We view the steady expansion in U.S. contribution margins as demonstrating the company’s profitability, with its fixed-cost content nature and historically declining churn rates suggesting further margin expansions,” Mahaney said.
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