We initiated a position in Netflix, Inc. (NASDAQ:NFLX) in the quarter. Netflix is the leading provider of on-demand streaming media that is now available in over 100 countries worldwide. We view that this form of Internet TV, which is on demand, personalized, and available anywhere, is replacing the linear TV experience. Netflix management has targeted 60 to 90 million U.S. subscribers long term and approximately twice that number globally. We view recent partnerships with multi-channel video programming distributors such as Comcast, DISH, and Virgin, who have integrated the Netflix offering on to their platforms as another positive. As the company scales subscribers as it has in the U.S., we expect margin expansion to follow accordingly. (Ashim Mehra)
From Ron Baron (Trades, Portfolio)'s Barons Partners Fund third-quarter 2016 commentary.
