Netflix’s Domestic Growth Slows as it Expands Overseas

Netflix reported declining profits in the third quarter due to higher costs paired with a decreasing domestic customer base. To make matters worse, the company linked their profit struggles to growing chip-based debit and credit cards. Since these chips enable extra security by adding a code to every transaction, Netflix was forced to cancel certain services.

Despite Netflix’s domestic troubles, the business has been successful in the overseas markets. The company added 2.74 million subscribers overseas even though it only projected an additional 2.4 million. With international expansion in progress, Netflix plans to break even in 2016, but expects to profit from the development in following years.

With Netflix’s prolific growth this decade, media companies are more skeptical with licensing their content to online providers. Since companies like Hulu are able to release ad-free content the day after shows air on TV, networks have grown wary of streaming services. Netflix is trying to be less disruptive to broadcasting networks, and is focusing more on original programming.

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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