Netflix: No Thanks - We'll Have Level 3 Instead
Focus Equity • 61 Comments
Focus Equity • 61 Comments
Jan. 20, 2015, 5:38 PM
Jan. 20, 2015, 4:18 PM
- Netflix (NASDAQ:NFLX) reports it added 1.90M net subscribers in the U.S. to edge its guidance of 1.85M and the consensus view of 1.83M.
- International net subs added were 2.43M vs. 2.15M guided and 2.17M consensus.
- Guidance for Q1 of 2015 is for 1.80M U.S. adds and 2.25M global.
- Total streaming contribution margin +140 bps Y/Y and - 440 bps Q/Q to 13.6% as the company's entry into new markets was a factor.
- Netflix says it will increase the percentage of original content spending over the next few years as new series continue to score highly.
- Piracy issues in new European markets are noted.
- Letter to shareholders (.pdf)
- Previously: Netflix beats by $0.27, revenue in-line (Jan. 20)
- NFLX +11.2% after-hours
Jan. 20, 2015, 4:06 PM
- Netflix (NASDAQ:NFLX): Q4 EPS of $0.72 beats by $0.27.
- Revenue of $1.48B (+25.4% Y/Y) in-line.
- Shares +9.2%.
Jan. 19, 2015, 5:35 PM
Jan. 19, 2015, 10:16 AM
- Amazon Studios (NASDAQ:AMZN) announces it will produce up to 12 original movies a year.
- Film veteran Ted Hope will lead the creative development efforts from the studio.
- The movies will be available on Prime Instant Video only 30 to 60 days after releasing in theaters.
- Amazon is likely to keep its crowdsourced movie script competition part of the equation
- Netflix (NASDAQ:NFLX) and Amazon have won critical acclaim for their original content.
- What to watch: A move toward shorter theatrical windows in the industry hurts exhibitors (CKEC, AMC, CNK, RLD, IMAX, RDI, MCS).
- Previously: Upstarts land major trophies at Golden Globes (Jan. 12)
Jan. 16, 2015, 7:46 AM
- Netflix (NASDAQ:NFLX) is upgraded to Outperform by analysts at Cowen Research.
- A survey by the investment firm showed strong consumer ratings for the service in an indication its stickiness factor may top other streaming options.
- "Original programming should continue to improve subs metrics," reason analysts.
- Cowen sets a $382 price target on the stock on a view EPS will rise to $16 by 2019.
- NFLX +1.0% to $326.99.
Jan. 14, 2015, 4:08 AM
- Building on his previous call for the FCC to regulate broadband service as a utility, President Obama will push the FCC today to overturn state laws that prevent cities from building their own broadband networks.
- The centerpiece of the initiative is a call for the FCC to pre-empt laws in 19 states that can prevent cities and localities from building their own high-speed broadband networks.
- FCC Chairman Tom Wheeler has already indicated that he is strongly considering the move.
- Related Tickers: CMCSA, T, VZ, TWC, NFLX, CTL, CHTR, FTR, ELNK
Jan. 12, 2015, 11:57 AM
- Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) won major awards at the Golden Globes last night in a further confirmation of the influence of the streamers.
- Amazon Studios won the Best Series - Musical of Comedy for Transparent.
- Kevin Spacey took home best actor in a TV drama for House of Cards. In a well-timed move, Netflix also released the trailer for season 3 of House of Cards today (YouTube).
- In another win by an upstart, IFC Films (NASDAQ:AMCX) landed the trophy for Best Film with Boyhood.
Jan. 9, 2015, 5:40 PM
- Millennials value Netflix (NASDAQ:NFLX), according to a survey conducted in part by the Consumer Electronics Associations.
- 51% of millennials polled called Netflix very valuable.
- Broadcast TV earned the same classification by 42% of millennials and cable TV trailed at 36%.
- Only 55% of millennials called the TVs the preferred screen to watch content.
- Most media analysts think the new online TV services being unveiled this year are only a marginal threat to Netflix subscriber growth
- Related: Dish asks cord-cutters how does $20 per month sound? (Jan. 5)
Jan. 7, 2015, 4:55 PM
- Netlix (NASDAQ:NFLX) exec Todd Yellin confirms that the company plans to make announcements this year on expansion into new markets.
- The company ended Q3 with 50.3M global subscribes and guided for an add of 4M in Q4.
- A note from Citibank is making some hay out of a Netflix LinkedIn job posting asking for candidates fluent in Arabic, Hungarian, Italian, Japanese, Korean, Polish, and Vietnamese.
Jan. 5, 2015, 12:57 PM
- Dish Network (DISH -2.2%) says its new OTT Internet TV service will price at $20 per month.
- The Sling TV package includes content from ESPN, ESPN2, Disney Channel, ABC Family, HGTV, TNT, Food Network, Travel Channel, CNN, TBS, Cartoon Network, Adult Swim, and videos produced by Maker Studios.
- The reveal was made at a press conference in front of the Consumer Electronics Show.
- The launch of online TV packages has some bearing on Netflix (NFLX -4.8%), although there's plenty of support for the idea that the company's streaming service will be an add-on to new OTT players.
- More details from Sony (SNE -1.5%) are expected at CES on its PlayStation Vue which includes cable networks untethered from the pay-TV bundle.
Jan. 2, 2015, 1:14 PM
- Fresh off a roller-coaster 2014, Netflix (NASDAQ:NFLX) is starting 2015 by posting solid gains in spite of a 0.6% Nasdaq drop. Volume (1.3M shares vs. a 3-month daily average of 2.5M) has been moderate.
- This morning, Leichtman Research announced a November poll of 1,233 U.S. adults in households with a TV set found 36% of Netflix subs stream daily, and 72% weekly. Those figures are respectively up from 29% and 70% in an Oct. 2013 poll, and just 10% and 43% in a 2010 poll.
- Leichtman also reports 48% of cord-cutters have Netflix, compared with 36% of pay-TV subs. Whereas only 32% of pay-TV subs stream Netflix daily, 53% of cord-cutters do so.
- An RBC survey of U.S. consumers carried out a year ago found 44% stating they use Netflix, and 2/3 of them saying they're either "extremely satisfied" or "very satisfied" with the service.
Dec. 31, 2014, 8:42 AM
- Streaming: Sony (NYSE:SNE), HBO (NYSE:TWX), CBS (NYSE:CBS), and Dish Networks (NASDAQ:DISH) are set to unveil streaming products in 2015. The theory of the companies that the skinny bundles will draw in more cord-cutters and cord-nevers than they will cannibalize current pay-TV subscribers will be put to the test. The rush of streaming options could help or hurt Netflix (NASDAQ:NFLX) depending upon which analysis an investor leans on.
- Theater traffic rebound: Exhibitors (CNK, RGC, AMC, CKEC, IMAX) and movie studios (LGF, VIA, VIAB, DIS, FOXA, CMCSA, TWX) maintain that the decline in theater attendance in 2014 (-6%) was due to a slate of films light on blockbusters. A bounce is forecast for 2015 with high-profile films such as Avengers: The Age of Ultron, The Hunger Games: Mockingjay Part 2, Fifty Shades of Grey, Jurassic World, Spectre (James Bond), and Mission Impossible 5 all set to premiere - along with the reboot of the Star Wars franchise in December. Capex spending on theater upgrades could also help boost in-theater spending and average ticket price for exhibitors.
- Mergers: If regulators allow the Comcast-Time Warner Cable (NYSE:TWC) and AT&T-DirecTV (NASDAQ:DTV) mergers to sail through it could clear a path for other media combinations, note analysts. Potential buyers include Alibaba (NYSE:BABA), Wanda Group, Softbank (OTCPK:SFTBY), and a TWX-rebuffed 21st Century Fox (NASDAQ:FOXA). Content producers which could be targets include Starz (NASDAQ:STRZA), Lions Gate (NYSE:LGF), DreamWorks Animation (NASDAQ:DWA), AMC Networks (NASDAQ:AMCX), and Scripps Networks (NYSE:SNI). A split-up Madison Square Garden (NASDAQ:MSG) could also be enticing.
Dec. 30, 2014, 2:21 PM
- Netflix (NFLX -0.2%) plans to release Q4 earnings on January 20, 2015.
- The company will keep to its recent tradition of taking some questions from investors during a live moderated video call.
- Analysts expect Q4 EPS of $0.45 on revenue of $1.48B. The crowdsourced estimate from Estimize is at $0.55 EPS and $1.49B revenue.
- The read from Netflix on global subscriber growth will be a key focus.
Dec. 22, 2014, 9:00 PM
- Netflix (NASDAQ:NFLX) discloses the salaries of the company's top execs in a new filing with the SEC.
- CEO Reed Hastings will take an annual salary pay cut to $1M from $3M and have a stock option allowance of $13.5M.
- Chief Content Officer Ted Sarandos goes to $1M in salary from $2.8M to go along with his stock option allowance of $9.6M.
- CFO David Wells will earn $2M in salary next year and has $1.675M as his stock option allowance.
- SEC Form 8-K
Dec. 17, 2014, 7:08 PM
- "It's never going to happen," says Netflix (NASDAQ:NFLX) exec Cliff Edwards.
- Other streaming video services such as BBC iPlayer have added oflline download support, as have Spotify and many other music streaming services. However, Netflix (per Edwards) believes offline downloads are just a "short term fix for a bigger problem." Namely, getting reliable, high-quality Wi-Fi access away from home.
- Netflix might have another motive for opposing offline viewing: Keeping its huge bandwidth costs down. Whereas Netflix currently incurs bandwidth charges only when a user is actually watching a show, offline support raises the possibility users would download large volumes of content they'd never get around to seeing.
- Earlier: Netflix strikes deal with Dish
Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through the following segments: Domestic streaming, International streaming and... More
Industry: Music & Video Stores
Country: United States