For those who’ve been trading stocks online actively, Netflix (NASDAQ: NFLX) would have always struck attention in the television programming industry. Though being in the category of Internet TV, $NFLX has managed to draw customers away from the conventional television programming providers. And it’s aiming for more!

Netflix is currently subscribed by over 47 million Americans, but the actual number of American viewers exceeds those 47 million. Sounds confusing? Take your household, for instance. You may have subscribed for Netflix, but other members of your family could be enjoying Netflix with your subscription. So while you may be the only subscriber in your household, the number of actual viewers is more.

$NFLX’s New Target

This happens in most households. Not every member of a family would be subscribing for Netflix though they’d certainly be active viewers. This is particularly true when families have teenage kids or young adults living with them. Many of them enjoy Netflix through the accounts of their parents. In fact, according to a William Blair study, there are around 36.4 million viewers of Netflix in the age group 10 to 24 who don’t pay for their subscription. People in the latter stages of the category would be branching out to create households of their own in the coming years, and possibly take a Netflix subscription of their own. These are the people Netflix wishes to target as it looks to reach its target of 60 to 90 million US subscribers.

Survey data also indicates that, by a most conservative projection, $NFLX would be able to convert around 3% of those 36.4 million viewers into paid subscribers on an annual basis. This translates to over a million new subscribers each year. That isn’t pretty optimistic, especially considering that Netflix has been able to add 4.8 million subscribers last year. However, Netflix has expected a slowdown in subscription growth.

Still, that would be quite a sluggish figure. One million new subscribers each year would translate to only around five million in the next five years. But there are other factors in favor of Netflix.

Consumers’ Preference for Netflix over HBO

Consumers now prefer quality over quantity when it comes to their television programming. That’s where Netflix wins. A recent Morgan Stanley survey says that more Americans love Netflix originals than HBO originals. HBO, by Time Warner (NYSE: TWX) has been in the business much before Netflix came to the scene, and yet it has only around 36 million US subscribers. So Netflix is obviously doing a much better job. Its quality programming could make teenagers and young adults watching through their parents’ accounts to eventually sign up for their own accounts. Thing is, it looks like it might take a good deal of time for Netflix to reach its target of 60 to 90 million US subscribers, though it will get there.

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