Netflix is predicted to hit 46 million streaming customers in the US by 2021, up from previous estimates of 43 million, according to a new Pacific Crest research note.
The research estimated that the firm could also hit 36 million US streaming subscribers by the end of 2015, up from 27.2 million at the close of 2012, as programming consumption increasingly shift online.
Speaking to CNBC, Pacific Crest research analyst Andy Hargreaves said: “We think there’s a paradigm shift and it’s a big move from live to on-demand,” adding that Netflix was “the best in the world at executing that model”.
With the outlook, Pacific raised its price target for Netflix from US$160 to US$225. Netflix’s share price climbed 5.4% yesterday to close at US$190.6 on the back of the bullish estimates.
In the note, Hargreaves also estimated that Netflix costs its average US subscriber US$0.20 per viewing hour, compared to US$0.50 per hour in the cable industry.