Netflix Offers Enhanced HD Quality Videos on iPhone 6

 

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Netflix, Inc. (NFLX) has enhanced iPhone 6 users’ experience by upgrading the video mode to 1080p from 720p this week on Wednesday. Though new on Apple Inc.’s (AAPL) iPhone, the company has been offering these services on Google’s (GOOGL) Android-based smartphones since 2013.

We believe the latest offering would allow Netflix users an enhanced video experience over their iPhones, while strengthening its foothold in the online video services business.

The news remain positive to the market and helped gain the company temporary momentum with 1% rise ($2.73) in stock prices on  Wednesday closing trade.   

Netflix’s applications for both Android and Apple devices have helped it to expand market share. The company has introduced HD video and AirPlay Streaming on these devices to enable users to stream any show or movie. Moreover, other devices such as handheld gaming consoles are being targeted by the company to reach a wider audience.

The company entered into partnerships with cable television providers like Virgin Media (in the U.K.) and Com Hem (in Sweden) to provide its service through set-top boxes from TiVo. The company has also partnered with three cable companies — RCN, Atlantic Broadband and Grande Communications — to further boost its subscriber base.

We believe the significant subscriber growth can be attributed to Netflix’s diversified streaming content. The company has licensing agreements with several big Hollywood production houses. Moreover, Netflix has expanded its original programming portfolio through partnerships with the likes of CBS, DreamWorks Animation, AMC and Walt Disney (DIS).

These partnerships have helped the company to venture into different genres like comedy, political thrillers, autobiographies and horror. The company is planning to increase investment in original programs in 2014. We believe that these initiatives will be incrementally beneficial for the company, helping it to add new subscribers and retain the older ones over the long run.

Netflix has a Zacks Rank #5 (Strong Sell).