) is reportedly planning to include
) and Twitter as the social medium for sharing and declaring
important company news. Other means of the company's disclosures
include the Netflix Blog and Netflix Tech Blog on the company's
Recently, Netflix was acquitted by the Securities and Exchange
Commission ("SEC") in a Regulation Fair Disclosure or Reg FD
case. Most importantly, the SEC also revised its disclosure rule,
which will allow companies to make corporate announcements over
the social media by providing relevant web addresses through
notifications on their company websites and press releases. This
change in rules comes after the SEC accepted the relevance and
participation of the social media in corporate
Notably, the new rule would strengthen Netflix's social
integration with Facebook. Previously, Netflix had decided to
extend its social features to its U.S. subscribers. The streaming
services provider announced new features that will enable U.S.
subscribers to link their Netflix accounts to Facebook.
However, we believe that Netflix will not be the sole gainer
from the newly-amended rule. Every other company will be in the
race to utilize social media for their corporate
We believe that more than anything else, Netflix's superior
content will be the ultimate deciding factor in the ongoing
battle for online supremacy. Netflix's new and exclusive content
offerings to its subscribers are the company's biggest USP,
setting it apart from its closest peers, Hulu, HBO,
) as well as the newly-launched services from cable and media
companies such as
We believe that the improving paid subscriber base,
international expansion, diversified content portfolio and a huge
video library are the positives in the near term. Moreover,
Netflix's own content delivery network, Open Connect, connects
its video library directly to Internet service providers,
ensuring fast data transfer to enhance customer experience. This
will further improve customer engagement going forward.
Currently, Netflix has a Zacks Rank #1 (Strong Buy).
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