Netflix just got some bad news for its streaming business

211
3
Netflix just got some bad news for its streaming business

Top media analysts have argued that this is not time to panic.

This is not over, Rich Greenfield, Rich Greenfield, of LightShed Partners, told Yahoo Finance Live this week. We're still very early in the process of streaming TV from linear TV to streaming television. He stated that there's probably 600 to 800 million homes with high quality broadband to support Netflix streaming or any streaming service.

There is still lots of growth to go but it isn't always the straight line that the market would like, Greenfield said.

After a blockbuster 2020 that saw streaming players soar on the wings of COVID 19 inspired stay at home trades, the stock underperformed the S&P 500 GSPC.

Bank of America, which lowered its price target to $605 but reiterated its Buy rating, suggested that Netflix's earnings report could shift Wall Street's mindset moving forward.

Large incumbents such as Amazon and Netflix will retain a top tier position, along with Disney and Warner Bros, as a key driver in the 2022 growth in Asia, according to a note from the note.

More shots on goal than anyone else''

Netflix is going to hike its basic plan by $1 to $9.99 per month for the upcoming year. A standard plan now costs $15.49, up from $13.99. The premium plan was increased to $19.99 per month from $17.99.

During its earnings call, Netflix COO Greg Peters said customers are willing to pay for great entertainment, with fan favorites like Ozark, Bridgerton, Stranger Things and The Crown all set to make triumphant returns this year.

Compared to other streamers, Greenfield credited Netflix with taking more shots on the goal than anyone else. He noted the surprise success of Squid Game as a recent example, with a record 142 million people watching the hit South Korean show in its first four weeks.

The analyst said that Netflix will surprise people this year due to the amount of shots on the goal that they are taking as the breakout hit that was going to fuel Q 4 a year ago. Netflix acknowledged that competition may have a negative impact on marginal growth during its earnings call on Thursday night. Greenfield reiterated that Netflix is uniquely positioned due to its commitment to content, in large part due to the competition.

Competitors are spending less than Netflix. Greenfield believes that investors should breathe a sigh of relief knowing that the streamer is spending billions of dollars on content around the globe.

Greenfield explained that they're investing more in content but they're investing more in content all over the world. The company is very confident in the next several years. Wall Street is worried that this growth story will grow because it doesn't have any confidence in that. In order to keep pace with the dramatic increases in content spending, the Bank of America agreed that content spending will remain a focus point in the space, warning that providers will need to find additional partners to reach the scale required to compete on a global scale.