Netflix: No Thanks - We'll Have Level 3 Instead
Focus Equity • 61 Comments
Focus Equity • 61 Comments
Sun, Apr. 17, 10:13 PM
- Amazon.com (NASDAQ:AMZN) is going monthly with a stand-alone option for its Prime Video -- amping the competitive stakes with Netflix (NASDAQ:NFLX) to a high pitch, not to mention Hulu.
- Prime Video was previously offered as a value-add to Amazon's $99/year Prime membership, which offers free two-day shipping on products. Now, the retail giant is undercutting Netflix prices with plans to offer customers a separate purchase for $8.99/month, a dollar less than Netflix's recently raised price for its most popular plan.
- Along with stand-alone video, Amazon is also offering full Prime membership on a monthly basis, rather than the annual payment. Customers can join in for $10.99/month with no annual commitment, meaning they can still save 25% by paying for the full year at once.
- Hulu -- co-owned by Disney (NYSE:DIS), Comcast (NASDAQ:CMCSA) and Fox (FOX, FOXA) -- offers its limited commercials plan for $7.99/month, and a no-commercials plan for $11.99/month.
- Now read Netflix's Pie In The Sky Valuation »
Sun, Apr. 17, 5:35 PM
Sat, Apr. 16, 10:06 AM
- Amazon (NASDAQ:AMZN) delivered a strong message to the exhibitor industry on its movie distribution plans during a presentation this week at CinemaCon.
- "All films will be released theatrically, with an aggressive marketing campaign to bring audiences to your theaters," stated Studios Marketing and Distribution Chief Bob Berney. Most importantly, Berney tipped off that theater chains will have an exclusivity window before films are streamed.
- The company's commitment to fully back films in theaters stands in opposition to the strategy of Netflix (NASDAQ:NFLX) which has been accused of using limited theatrical exposure as a way to qualify for awards.
- Amazon snapped up six new films at the Sundance Film Festival earlier this year, a few of which appear to have strong box office appeal.
- Also creating some buzz at CinemaCon was Sean Parker's The Screening Room which is looking to completely disrupt the industry with a service that makes films accessible at home the same day they are released in theaters. Most analysts think Parker will fail to get a majority of the major theater chains to play ball. On the studio side, a top Warner Bros. exec strongly hinted at CinemaCon that a middle-man wouldn't be allowed into the party.
- Related stocks: CKEC, AMC, CNK, RDI, IMAX, MCS, LGF, DWA, FOXA, TWX.
- Now read Amazon Just Fired A Major Shot At Netflix
Wed, Apr. 13, 8:15 AM
- Nomura tackles the burning question of how deeply the gradual prices increases on grandfathered Netflix (NASDAQ:NFLX) customers will impact U.S. subscriber growth.
- The investment firm expects about 450K cancellations which will be more than offset by the extra margins earned on customers that stay with the service.
- The next two quarters present the biggest test to date of the stickiness factor with Netflix's U.S. customers.
- Nomura keeps a Buy rating and $130 price target on Netflix off a forecast for 2017 EPS of $1.25. Earnings are due out from the streamer next week.
- NFLX +0.96% premarket to $108.00.
- Now read Why Netflix Investors Need To Keep An Eye On CinemaCon
Tue, Apr. 12, 11:39 AM
- Cantor Fitzgerald expects in-line results from Netflix (NFLX +1.6%) when it reports earnings next week.
- Analyst Youssef Squali thinks it could be another quarter where better-than-anticipated international subscriber growth makes up for a small shortfall with domestic subs.
- He expects Q1 revenue from the streamer of $1.958B vs. $1.965B consensus.
- On an interesting note, the analyst thinks the move by Starz to unbundle with a streaming service is a positive for Netflix due to its first-mover advantage and value proposition.
- Cantor rates Netflix at Buy with a price target of $140.00.
- Youssef Squali ranks #35 out of 8,847 analysts listed on TipRanks.com.
- Now read Is Netflix Next For Disney? Part I and Is Netflix Next For Disney? Part II (Podcast)
Fri, Apr. 8, 7:00 PM
- Disney (DIS +0.3%) has run into a bit of a hurdle in its succession plan after Monday's surprise news that COO and likely CEO candidate Tom Staggs was leaving his post.
- Observers speculate that the board didn't see the creative strength in Staggs that the company would need in a replacement for chief executive Bob Iger, planning to step down in two years. The company's also faced down woes over its TV business, both at broadcast net ABC as well as at ESPN.
- BTIG analyst Richard Greenfield has the answer to both problems: Disney should buy Netflix (NFLX -0.6%).
- Then it gets a future leader with a creative streak in Netflix's "visionary CEO" Reed Hastings, as well as a substantial established stake in on-demand video.
- "Netflix is already a great friend of Disney," Greenfield says. "In fact, Iger has repeatedly acknowledged how they are in part responsible for Netflix’s success. Disney continues to sell more and more content to Netflix spanning movies and television series, while at the same time struggling to get their own direct-to-consumer content business off the ground in the UK."
- But a deal would be huge. "Buying Netflix is an awfully expensive acquire, but it could be Disney’s only hope. Disney’s market cap is currently $157 billion and its enterprise value is $176 billion compared to Netflix’s $45 billion market cap and enterprise value."
- Now read Did Disney's Board Get What It Wanted? »
Fri, Apr. 8, 11:11 AM
- Netflix customers (NFLX -0.2%) grandfathered into the company's $7.99 per month plan will see their rate jump to $9.99 in May if they want more than one device supported, reports Quartz.
- JPMorgan thinks the pricing increase will be implemented slowly to limit subscriber loss. UBS predicts the percentage of Netflix customers that end their subscription due to the extra dollars will only be 3% or 4% - a mark that indicates Netflix will come out way ahead from the change.
- Netflix is due to report on FQ1 numbers, including subscriber growth, on April 18.
- Now read HBO Versus Netflix: Here's A Crazy Idea
Thu, Mar. 31, 6:01 PM
- As part of its public actions today, the FCC says it won't investigate Netflix's (NASDAQ:NFLX) admission that it throttled video quality for the wireless customers of AT&T and Verizon.
- Netflix didn't violate any regulations by lowering the quality, Chairman Tom Wheeler said, despite speculation that Netflix could have run afoul of the agency's new net neutrality stance.
- But he said that Netflix's actions were "outside" the open Internet order the FCC made, which focused on core Internet providers rather than edge providers or websites.
- Netflix said it was throttling quality for those consumers in an effort to help them avoid expensive overcharges for violating data caps.
- Now read Netflix Flexing Muscles In Home Market, Deploys New Strategy Abroad »
Tue, Mar. 29, 11:22 AM
- Netflix (NASDAQ:NFLX) drifts to a two-month high on a 1.61% move today.
- The biggest debate on Netflix over the last week has been over the $90M it paid to acquire supernatural cop thriller Bright starring Will Smith.
- Related: Netflix's Purchase Of 'Bright' - Juice Likely Not Worth The Squeeze (March 26)
Thu, Mar. 24, 6:49 PM
- Amid chatter that AT&T (NYSE:T) and Verizon (NYSE:VZ) have throttled Netflix video quality down, Netflix itself has admitted for the first time that it's the one doing the limiting.
- Netflix (NASDAQ:NFLX) says it restricts video quality on those two and on most carriers worldwide, in order to protect its customers from busting through their data caps -- which could be expensive, and discourage viewing more Netflix.
- The company is capping streams at 600 kbps -- well within speed capacities of most wireless networks -- in part because a two-hour movie in HD can consumer an entire month's data allowance. The company says it's working on its own "mobile data saver" to let consumers optimize Netflix against their available bandwidth.
- Netflix doesn't throttle videos at T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S), due to "more consumer-friendly policies" on data overages (i.e., lower speed rather than expensive charges). It was a comment from T-Mobile chief John Legere about lower-quality video at Verizon and AT&T that launched the discussion; and T-Mobile's "Binge On" offering exempts video from customers' data caps, but reduces its quality to 480p (promised "DVD or better" quality).
Mon, Mar. 14, 12:03 PM
- Lions Gate (NYSE:LGF), frequently the subject of merger rumors of late, could get pushed into a deal by activists who have been ramping up stakes in the indie studio.
- Alibaba and Netflix (NASDAQ:NFLX) are linked by analysts as possible suitors with an eye to building up content stores, The Deal notes.
- Jana Partners and Barry Rosenstein lifted their share of the studio to 5.7% last month, making it No. 3 among outside shareholders. And Eminence Capital has built a stake near 1%. Canadian companies such as Lions Gate require only a 5% stake to requisition a special shareholder meeting to press board changes.
- As usual, John Malone is the X-factor, with a distinct interest over the past year in what happens to Lions Gate. Last fall, Liberty Global (NASDAQ:LBTYA) and Discovery Communications (NASDAQ:DISCA) entered a long-term strategic deal with the studio (Malone has large stakes in those two, along with a 3.4% LGF stake taken in February). And he had floated an LGF tie-up with Starz (NASDAQ:STRZA), in which he also holds a stake among others.
- Another likely merger appeal: With a Vancouver base, Lions Gate could serve as part of a tax inversion deal.
Wed, Mar. 9, 8:59 PM
- A new startup aims to offer an at-home premium movie service that gives consumers a crack at movies the same day they premiere on the big screen.
- Sources tell Variety that The Screening Room will charge $150 for a set-top box and $50 per film. The venture is backed by Sean Parker who promises anti-piracy technology.
- A major hurdle still to be worked out is deals with major exhibitors and distributors. Those negotiations could reduce The Screening Room's cut to 10% or less.
- Efforts are already underway to blur the lines between Hollywood and the streaming world without disrupting the box office revenue model, but no broad deal has been hashed out.
- In the mix: Netflix (NASDAQ:NFLX), AMC Entertainment (NYSE:AMC), Cinemark Holdings (NYSE:CNK), Regal Entertainment (NYSE:RGC), Carmike Cinemas (NASDAQ:CKEC), Reading International (NASDAQ:RDI), Marcus Corp (NYSE:MCS), IMAX (NYSE:IMAX), Paramount (VIA, VIAB), Lions Gate Entertainment (NYSE:LGF).
Mon, Mar. 7, 10:48 AM
- Netflix (NASDAQ:NFLX) is 4.1% lower with some new comments from ITG Research leaning to the cautious side.
- ITG missed badly with its estimate on Netflix's Q4 U.S. subs, but the firm's analysis has swung shares in the past.
- Over the weekend, House of Cards Season 4 debuted on the streaming service. Most reviews have been favorable.
Wed, Mar. 2, 9:19 AM
- Netflix (NASDAQ:NFLX) renews Fuller House for a second season after the series generated significant social media buzz (positive and negative) after its debut earlier this week. The remake of the 1980s-1990s Full House series brought back many of the original stars, although the Olsen twins were missing in action.
- This weekend, House of Cards Season 4 debuts on the streaming service in what looks like advantageous political year timing.
- Next week, original series Cuckoo, Flaked, and Dinotrux (season 2) arrive to the streaming lineup.
- Netflix is also beefing up its movie lineup with some well-known titles this month. Star Trek I and II are available as is the iconic Scarface.
- Netflix is flat in early trading at $98.20. Shares haven't traded in triple digits since early January.
Mon, Feb. 29, 2:32 PM
- Netflix (NFLX -1%) appears to have stepped up its game in denying access to its service to VPN (virtual private network) users.
- Raging users have reported losing access to the service through a VPN over the last 24 hours. A post on Reddit indicates the VPN crackdown list could include more than 20 nations. In some cases, users use a VPN for content they want to access in their local language when subtitles aren't available.
- The company blocks the use of VPNs and DNS region changers in order to stick tightly to a geographic licensing model.
Fri, Feb. 19, 11:36 AM
- Digging through this week's 13F filings, Evercore ISI's Pankal Patel and team attempt to separate the holdings of hedge funds and other active managers.
- What they found were that institutions (active managers) were most overweight Wells Fargo (NYSE:WFC), IBM, and Coca-Cola (NYSE:KO). Two new names on the overweight short-list: Level 3 Communications (NYSE:LVLT) and Zimmer Biomet (NYSE:ZBH).
- Hedge funds, on the other hand, were most overweight Time Warner Cable (NYSE:TWC), Priceline (NASDAQ:PCLN), and Netflix (NASDAQ:NFLX). Hedge funds also added to holdings of AIG, Humana (NYSE:HUM), Alphabet (GOOG, GOOGL), and EMC during Q4.
- Also of interest: While consumer discretionary stocks (NYSEARCA:XLY) continue to be the top over-weighted sector for hedge funds, they pulled back from those names considerably during the quarter, and added to tech (NYSEARCA:XLK) in a big way. They also added to their underweight in the consumer staples stocks (NYSEARCA:XLP).
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
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