On July 17, video streaming behemoth Netflix (NASDAQ:$NFLX) released its Q2 earnings letter to shareholders. Aside from the statistics, Netflix opened up to shareholders about how their platform is replacing linear TV.
“Creating a TV network is now as easy as creating an app, and investment is pouring into content production around the world. We are all co-pioneers of Internet TV and, together, we are replacing linear TV,” Netflix said in a letter.
The California-based company does not deny that linear TV is a huge market and can still grow, but they recognize that the Internet provides an “incredible” chance for expanding the video entertainment business around the globe. In fact, Netflix believes that the shift from linear TV to on-demand viewing illustrates such a vast opportunity that the majority of Internet TV services will be successful.
Shares of Netflix increased in after-hours trading on Monday after it announced stronger-than-expected results for Q2 of 2017 and gave an optimistic outlook for the third quarter.
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