Netflix Expected to Penetrate 72 Percent of U.S. by 2028 – Report

There is a reason that Netflix has been adopting an aggressive strategy in recent years to not only enter new international markets but also add new content for an expansive and hungry audience.

According to a new report from Citi Research (via Forbes) on what the future holds, the behemoth entertainment-streaming platform is looking to increase its number of subscribers from the current 118 million to about 262 million within a decade.

In addition, Netflix is expected to penetrate majority of the United States during the same period that could leave top competitors such as Amazon and Apple in the dust. The company also has its eyes set on emerging markets such as China.

“At a high level, our $305 price target implies that in ten years Netflix has 262 million total subs (representing 72% U.S. penetration, 37% penetration of other developed markets, and 21% penetration of emerging markets ex-China),” analysts Mark May and Hao Yan said.

Netflix understands that growth on such levels will always go hand in hand with enough diverse content. The company is estimated to spend around $14.7 billion in 2018, $16.5 billion in 2019, and $17.5 billion in 2020 for the acquisition of new television series and movies. This budget train for new content will hit almost $20 billion in 2028, maybe even more.

During an earnings report earlier this year, Netflix revealed that it had enjoyed a great fourth quarter to end the past year. The company had raked in the most amount of subscribers ever in any quarter in history. The resulting success boosted Netflix to cross the $100 billion barrier market cap for the first time.