This was followed by the perceived threat of Disney+, Apple TV+ and HBO Max launches. End result: No problem, shake it off.
Ask those analysts how they look at things now. Their response might be: It’s easy to look in the rear-view window. On Monday, Netflix’s publicly traded shares hit another high -- up nearly 4% to $493.81 -- up 52.6% year to date, up 29.8% versus the same time period a year ago.
COVID-19 lockdowns benefited streamers. Plenty of people working from home, ready to access any premium VOD service in any moment of work-related downtime.
Think about our traditional media companies, which may have had a rocky period. And then think about what Imperial Capital analyst David Miller says about Netflix:
It has no exposure to advertising, cable networks, movie theaters or theme parks -- something almost all legacy media companies have.
What about big time content? Netflix has no live sports programming -- and that’s good news right now. The lack of sports TV has plagued media companies during this pandemic. (On the flip side, Netflix, doesn’t have TV news content, which has been rising in viewing and advertising revenues.)
Competition from Disney+, Apple TV+ and HBO Max has done little to stop Netflix -- now almost six months after the start of the new wave of streamers.
To be sure, each of those services can tout their own improved, positive financial metrics. And, for Netflix, at around 70 million U.S./Canada subscribers and 183 million worldwide, it might tell you a slightly different story: The service has been reaching a saturation point. What then?
The big factor yet to come: More movie/TV content creation and acquisition. Netflix will spend another whopping amount on this: $17.3 billion in creating and acquiring new content in 2020.
Will there be saturation issues here?
Does that also mean a possible consumer monthly price rise? These factors could curtail the party.
In the meantime, we have a lot of “Tiger King” episodes to catch up on.