Netflix, Inc. (NASDAQ:NFLX) wants to become even more ingrained in the lives of its users. The company is zeroing in on expanding user hours spent on the platform as another path towards growth.
CNBC shares some insight into what Netflix is aiming to accomplish.
Though subscriber rates are slowing, Netflix may have another area of growth: Getting people to spend more time watching its content.
“We’re still a small fraction of every society’s overall viewing,” Netflix CEO Reed Hastings said on a call with investors on Monday. “So I think there’s still room to go there.”
According to GBH Insights’ internal research, the average Netflix user is spending roughly 10 hours per week on the platform, while Amazon and Hulu users are spending about 5 hours on those platforms. For comparison sake, the Bureau of Labor Statistics estimates that average viewers are watching 19.6 hours of traditional TV a week.
“With no ads, Netflix has bet the farm on content and subscriber growth, which has been a genius strategy to date. Although new competitive challenges are now on the horizon,” shared GBH Insights chief strategy officer and head of technology research Daniel Ives.
Netflix, Inc. shares were trading at $370.75 per share on Thursday morning, down $4.38 (-1.17%). Year-to-date, NFLX has gained 93.14%, versus a 5.78% rise in the benchmark S&P 500 index during the same period.