Netflix is a global streaming service that provides a wide variety of movies, TV shows, documentaries, and original content to subscribers. It was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California, United States.
Originally, Netflix started as a DVD-by-mail service, but in 2007, it launched its streaming platform, which revolutionized the way people consume media.
For many investors, they want to know how to buy Netflix shares in Australia. US Netflix Shares like all stocks can be purchased by investors living in Australia. Netflix shares can be purchased using Australian brokerage accounts which allow international share purchasing.
How To Buy Shares In Netflix (NFLX)
To acquire Netflix stocks, you need to follow a few steps to open a brokerage account, which allows you to buy and sell shares, ETFs, bonds, and mutual funds. Netflix is listed under the ticker symbol NFLX on the US NASDAQ.
Nowadays, modern brokerage accounts offer the convenience of trading across multiple markets and countries while minimizing fees.
Choosing the right brokerage account can be daunting due to the multitude of options available. Here are some important factors to consider:n
Transaction Fees: Brokers generate revenue through transaction fees associated with buying and selling shares on the stock exchange. It’s crucial to be aware that trading fees apply to most market orders.
As a result, it’s advisable to approach share investing as a long-term opportunity, considering that stock prices can experience significant fluctuations within short time frames.
Forex Exchange Fees: Buying US shares involves converting your local currency (e.g., Australian dollars) into US dollars, which may result in additional costs known as foreign exchange fees.
Although brokers might not explicitly advertise these fees, they could still be applicable.
Monthly Fees: Some brokers charge a fixed monthly fee, usually associated with comprehensive information and advanced features beyond the needs of an average investor.
However, not all platforms follow a subscription-based model, so it’s important to assess whether you require such additional services.
Website and App Functionality: Each broker offers its own website and app with varying levels of functionality. Some platforms provide basic interfaces, while others offer detailed share charts and market information.
Your choice may depend on your preferences and requirements regarding the availability of these features.
Trade Options: Brokers operate in different markets, which affects the types of trades you can execute.
Fees and trade minimums may vary depending on the specific market. Trade minimums refer to the minimum dollar value required for each trade.
Access to Live Market Data and Research: Certain brokerage platforms offer live market data, including real-time price movements, buy and sell volumes, and historical trading data.
Some platforms may also provide additional research tools, while others may not offer these features.
Order Types: Brokers provide various options for order types when buying and selling shares. These options allow you to specify the quantity of shares or the desired dollar value for the purchase.
You can choose from options like “limit price,” “at market,” or “conditional order.” Additionally, some platforms may offer expiry options such as “good till cancelled,” “day only,” or a specific date.
By carefully considering these factors, you can make an informed decision when selecting a brokerage account to purchase Netflix stocks.
Considerations for Buying Netflix Shares in Australia
Buying US Netflix stocks from Australia follows a process similar to acquiring Australian-listed shares, but there are significant differences due to the companies being headquartered in another country, despite their global reach.
Additional tax implications must be taken into account since these shares are ‘domiciled’ outside of Australia.
When it comes to dividends, it’s crucial to understand that US stocks, such as Netflix, don’t provide franking credits. This is because they are not subject to Australia’s dividend imputation system, which prevents double taxation.
To invest in the US market, certain paperwork requirements must be fulfilled, including completing the W8BEN Form.
This form is mandated by the US government for non-US residents intending to invest. Australian investors can benefit from the special tax arrangement between Australia and the United States by properly filling out the W8BEN form.
Failure to submit this form would result in a 30% tax on any sold shares and a 30% withholding tax on dividends. However, accurately completing the W8BEN form effectively reduces the American tax component to 15%.
It is crucial to ensure the timely and accurate completion of this document. Seeking investment or financial advice as needed is highly recommended to navigate this process successfully.
Netflix Share Price
In 2023, Netflix experienced remarkable growth, demonstrating a year-to-date (YTD) increase of 49.86%.
However, this figure alone does not fully capture the rollercoaster trajectory of Netflix’s share price. During the COVID-19 pandemic, Netflix’s share price reached its peak at $691.69 on November 17, 2021.
This surge occurred when people had higher disposable incomes and were confined to their homes due to quarantine measures.
Since then Netflix’s share price has plummeted to an all-time low of $174.87 on June 30, 2022. This decline coincided with intensified competition, reduced consumer disposable income, and rising inflation.
However, since June 30, 2022, the stock value has experienced a remarkable rebound, surging by 152.71% to reach its current valuation of 441.91.
Netflix Streaming Service
Netflix is primarily involved in the business of streaming entertainment content. It operates as a subscription-based streaming service, offering a vast library of movies, TV shows, documentaries, and original programming to its subscribers.
Netflix streams content directly to its customers’ devices, such as smartphones, tablets, computers, smart TVs, and streaming devices.
As a streaming service, Netflix acquires content from various sources, including licensing content from studios and networks, as well as producing its own original content.
The company invests in creating high-quality original series, movies, and documentaries, which have gained significant popularity and critical acclaim.
Netflix’s business model revolves around charging monthly subscription fees to its customers, who gain access to a wide range of content available for streaming on-demand.
The company focuses on personalizing the user experience by leveraging algorithms and data analytics to provide tailored content recommendations based on user preferences and viewing history.
Furthermore, Netflix has expanded its services globally, operating in multiple countries and adapting its content offerings to cater to local preferences.
Netflix Facing Heightened Competition
In recent years, Netflix has encountered intensified competition with the emergence of various streaming services such as Amazon Prime, Stan, Hulu, HBO Max, Disney+, and Paramount+, among others.
While Netflix initially faced competition from physical rental stores like Blockbuster and pirated content, the landscape has shifted as consumer attitudes towards media consumption has evolved.
As the demand for paid content has grown, Netflix has adapted its business models by adjusting its pricing structure and introducing cheaper options that include advertisements.
These changes aim to cater to different consumer preferences and increase the company’s market competitiveness.
One notable development is the controversy surrounding the enforcement of single-household viewership. Many households share Netflix account passwords, and the company has implemented measures to prevent this practice.
The long-term impact of this crackdown is uncertain, as it remains to be seen whether it will have a negative effect on Netflix’s subscriber base.
In contrast, Netflix’s competitors have not implemented similar measures, potentially attracting viewers who prioritize password-sharing flexibility.
In this dynamic and competitive streaming landscape, Netflix continues to navigate these challenges, innovate its offerings, and strive to maintain its position as a leading player in the industry.
As of July 16, 2023, Netflix’s share price has shown a significant growth of 49.86%, similar to other prominent technology companies like Amazon.
While this growth is impressive, it is important for investors to adopt a long-term investment strategy when considering any investment.
Additionally, it is essential to take into account the potential tax implications associated with investing in foreign markets.
Therefore, it is advisable to consult a financial advisor or a qualified accountant to seek guidance on investment decisions. Furthermore, this article does not endorse the purchase of Amazon shares.