Netflix is on a roll. The video streaming giant has grown 6x in the last 6 years, expanding from roughly 10.3 million subscribers in 2009 to an astounding 65.6 million in the second quarter of 2015.
Over the past 6 years, Netflix has averaged around 30 percent year-over-year growth. But, it is spending (a lot) to continue that growth. While it snagged $1.6B in revenue, the company only netted $26M (with an “M”) in income.
The company’s investment in original programming appears to be paying off; in addition to surging subscribers, Netflix’s House of Cards was nominated for 11 Emmys for 2015.
Netflix is one of many big companies replacing their physical counterparts. For movie theaters, ticket sales are at a 2-decade low, plummeting to less than $1.3B at the end of 2014. But, it is not just movie theaters: online stores are overtaking many pillars of American retail life. This week, FAO Schwartz, one of the world’s most iconic toy stores, shuttered its flagship store in New York. The closing was the very same day that Amazon.com posted record sales of select products on a promotional “Prime Day” sale.
Physical stores are having difficulty keeping up with their online competitors–good news for the tech industry.
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