Is Netflix Now the Eighth Big Media Conglomerate?

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Thread: Is Netflix Now the Eighth Big Media Conglomerate?

  1. #1

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    Is Netflix Now the Eighth Big Media Conglomerate?

    http://www.tvnewscheck.com/article/1...-act-to-follow

    https://www.hollywoodreporter.com/ne...merate-1103485

    Yes and the article mentions growth outside of the USA for the major media outlet as a factor here. Also new releases of shows are a factor here.

    1. The company said that while revenue for its legacy DVD-by-mail product was just $100 million in the first quarter, its streaming revenue surged a record 43 percent to $3.6 billion, and Hastings predicts nearly 44 percent growth in the current quarter.

    2. Most of Netflix's growth is coming from outside of the U.S., as the company is already in 190 countries. The current quarter, in fact, should mark the first time in Netflix history that the majority of its revenue comes from international markets. As of the end of the first quarter, the company boasted 68.3 million subscribers outside the U.S. compared to 56.7 million stateside.

    3. Ted Sarandos, the company's chief content officer, said Tuesday that 13 Reasons Why, the company's mystery series about a teenager who takes her own life, was probably the most-watched show in the entire world last year.

    4. While Sarandos said that Netflix has no intention of diving into the news game to compete with CNN and the others, it is having success with topical interview shows, such as one that features David Letterman. More such shows are coming, perhaps one starring former President Barack Obama, he said.

    5. Sarandos said Netflix released 33 films theatrically last year, all of them available for streaming the same day they hit theaters, and he sees these so-called day-and-date releases becoming "more and more accepted as part of the distribution norm."

    6. Netflix certainly has a valid claim of being a major media conglomerate as opposed to just a wildly popular distribution platform, given that Hastings says it will spend up to $8 billion on content this year alone, much of it to create original programming. One of its newer successes is in reality programming, with shows like Queer Eye and Nailed it. "Our output in this area is now comparable to similarly-focused U.S. domestic cable networks," Hastings said in his letter to shareholders.

  2. #2
    The thing that's important to note is they're doing this in a very inexpensive way. They do a lot of sub-contract deals with independent producers and former network stars, and they create relatively inexpensive hits without a lot of the baggage of owning traditional networks or channels. It's really impressive, and why investors absolutely love their stock. The price has more than doubled in the last year.

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