Why Netflix Shareholders Have Nothing to Worry About

Netflix (NASDAQ: NFLX) has built an impressive audience of 104.2 million subscribers around the world. That's a number that exceeds the size of the entire traditional pay-television audience in the United States by about 12 million customers.

To get to that number, of course, the company has spent dearly building up its library of original content as well as licensing shows and movies from other creators. That's an expense that's been rising, moving from $2.4 billion in 2013 to a planned $6 billion in 2017.

In addition, that number is unlikely to come down soon. The company has to keep creating content specific to the various global markets it serves as well as content that plays globally. That demand will be driven higher as Disney (NYSE: DIS) launches its own streaming service built around its incredibly deep library of content and its unprecedented catalog of intellectual property.

Source: Fool.com