Tag Archives: Netflix

by | May 9, 2018 · 4:00 am

The Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services

Most people know what Netflix is, but few know what Roku Inc is. Well, few is probably not the right word because Roku Inc have 19,3 million active users (Fourth quarter 2017). A company that was founded in October 2002.

Roku was one of the hottest stocks last year and their shares skyrocketed from its IPO price of $14. The stock went straight up and peaked at $56 in December, but now the stock has plummeted. In other words; Roku is like Netflix in the beginning; Volatile.

Roku Inc is different from Netflix. Roku Inc operates television streaming platform. The company connects users to streaming content, enables content publishers to build and monetize audiences and provides advertisers with capabilities to engage consumers.

Its Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services that suit their budget and needs.

Ad-supported channels available on the Roku platform include CBS News, Crackle, The CW Television Network and Vice; subscription channels include HBO Now, Hulu and Netflix, as well as traditional pay TV replacement services like Direct TV Now, Sling TV and Sony Playstation Vue; and transactional channels include Amazon Video, Google Play and Vudu. Its product categories include advertising, Roku TVs and streaming Players.

Netflix has an easier business model. Log in on their website and voila, you can watch your favorite movie. It’s a tech company. Roku is something different; it’s not a hardware company. You need one of their Roku boxes.

The Netflix application was revamped for the Roku 2 HD, Roku 2 XD and Roku 2 XS; the current models now provide the option of subtitles, when the program provides them.

The Roku box runs a custom Linux distribution called Roku OS. The first-generation Roku players first came with Roku OS 1.0. After that, Roku has continued to update the software with bug fixes, security updates, features additions, and many new interface revisions. In October 2017, the Roku software version 8.0 wa released.

The stock will continue to be very volatile and this is a high-risk, high-reward case. The report on Wednesday will be important for Roku`s long term growth narrative. The company expects to continue losing money this year aiming to operate near break-even on an operating cash flow basis.

Roku Inc is expected to report earnings on May 09, 2018 after market close. The report will be for the fiscal Quarter ending March 2018. Analysts are forecasting revenue to climb 27 percent to $127,55 million in the first quarter, up from $100,09 million from a year ago, while reporting a loss of $0,16 per share.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | May 8, 2018 · 4:00 am

Disney said to Netflix that they are planning to launch a competing streaming site service next year

Im a big fan of Walt Disney. Thats why I not only look at their films, but also their stocks. Walt Disney is not alone in the film market, and one of their competitors is Netflix. But for how long? Last Fall Disney said they wanted to pull its own films from Netflix.

Disney said they are planning to launch a competing streaming site service next year. It will be a family friendly streaming site and a site for adults. We know that Netflix is producing its own films, but we also know how Disney is doing it. It is a production powerhouse. In other words; a big competitor in the future.

(Tchaikovsky`s music from the ballet “The Nutcracker” is one of my favorites. This fantasy film directed by Lasse Hallstrom is scheduled to be released by Walt Disney Pictures on November 2, 2018)

Walt Disneys market cap is 150,46 billion, while Netflix market cap is 138,10 billion. A big difference, but unfair to compare, because Netflix is a streaming company while Disney is so much more than that.

Walt Disney Company is an entertainment company. The company operates in four business segments, which is Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.

The media networks segments includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.

There is no doubt that the real big Champion in the streaming market is Netflix, but they will get a serious competitor in the future. The Fox deal will make Disney even bigger on top of its already great pool of media properties. A majority stake in Hulu will also help.

Disney will take control of Fox`s movie studios, TV studios, FX Network and National Geographic Channel. All this will help Disney to build a new streaming giant.

Disney agreed to buy the bulk of Fox for $52 billion in December of 2017. Included in the package deal was a 30 percent stake in online streaming service, Hulu, of which Disney already owned 30 percent.

Now with a majority stake in the company, Disney has the option to buy out the rest of the Hulu stock from Comcast and Time Warner or engage with all the players involved. There is no doubt that they can be a great production powerhouse.

Disney are jumping right into it with Hulu. On top of that they can start to build their own streaming site for children in addition to ESPN Plus, which is a subscription service for sports fans, that will launch this spring for $4,99 per month.

“I think the way to look at the revenue opportunities, as particularly as it relates to production, is to consider the fact that what we`re buying here is significant production capabilities and, with that, the talent to produce on our behalf,” Iger said to investors earlier this year.

Walt Disney Company is expected to report earning on 8 May 2018 after market close. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $1,68, and reported earning for the same quarter last year was $1,5. Any earnings surprise?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | April 19, 2018 · 4:00 am

Netflix`s 43 percent jump in streaming revenue was its best in history

What investor on this planet didnt like Netflixs Q1 2018 revenue growth of 43 percent? Netflix has been one of my favorite stocks in many years and is still a favorite. But what investors are concerned about is their amortization of streaming content that is not keeping pace.

Netflix`s amortization of streaming content is up «only» 33 percent which is still very good, and their earnings growth is up 60 percent YoY. This is absolutely impressive. Despite the fact that their revenue growth is astonishing, CEO Reed Hastings has sold 8 percent of his stock.

 

Netflix is still expanding and according to Financial Times, the company will raise its investment in content across Europe and plans to spend about $1 billion on original productions this year. The revised budget will be more than double that of last year.

Netflix also unveils ten new European projects, and second season of «Glow» which will be released on June 29. Those who criticize their spending should be quiet, because the growth is unbelievable for a tech company that has been on the market for more than two decades.

Netflix added 7,4 million more streaming subscribers with 5 million of them outside the U.S, and higher subscription prices on top of their growing customer base gave them a huge boost for their revenue.

Netflix`s 43 percent jump in streaming revenue was its best in history.

Netflix reported $290,1 million in net income for the first quarter and that alone is more profit in three months than the streaming company had for the entire year of 2016.

Whats really funny is to see how Netflix in their own earnings report every quarter in a shareholder letter are describing their competitors. Netflix has been in the market for a couple of decades, but the competition has changed in the past year.

Last year, they were talking about «skinny bundles» and Amazon.coms sports ambitions, but new they mentioned Amazon, Apple, Facebook, Alphabets Google, YouTube and Walt Disney. Netflix are talking much about the iPhone maker and predicted how Apple will incorporate original content it has begun to purchase.

«Apple is growing its programming, which we presume will either be bundled with Apple Music or with iOS,» Netflix said. More companies are entering the market. Apple has reported that they will invest about $1 billion on original video content.

Netflix pointed out that it doesn`t seem to think Facebook and YouTube are truly competitors, as they are supported by ads instead of subscriptions.

Their biggest competitor may be former partner Disney. They split with Netflix last year, and started its own streaming services. Disney acquired 21st Century Fox and Hulu will also be owned by Disney after the deal with Fox.

Netflix`s market cap is $132 Billion.

 

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by | July 18, 2017 · 3:00 pm

Netflix crossed the symbolic milestones of 100 million members and more international than domestic members

Netflix continue its journey to heaven. Straight up, and so goes the stock price. Netflix will go straight up from start today. Whats interesting to see is that Netflix now has more subscribers outside the U.S then inside its own borders.

Netflix said in its streaming video that «This would mark the first ever annual contribution profit from our international segment.»

 

 

Netflix said in a letter to its shareholders that it «crossed the symbolic milestones of 100 million members and more international than domestic members» in the latest quarter, ending it with 52,03 million international and 51,92 million U.S subscribers.

Yesterday, Netflix said they beat second-quarter earnings expectations as hit originals, such as House of Cards and Orange is the New Black. Those are two examples of popular films that many of my friends are following regularly.

The stock price continues to rise and so are their popularity. The winner takes it all.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | April 27, 2016 · 9:00 am

Amazon are fighting with Netflix and YouTube

Amazon continue to rise up and the average 12-month price target is about $750, which means the company has the potential to jump another 20%. Not a surprise for bullish investors were about 90% is bullish on that stock.

The e-commerce giant will post first quarter earnings on Thursday 28 April after market close, and it`s expected to post EPS of $0,64 on $28 billion in revenue which is three cents higher than Wall Street on the bottom line and around $60 million higher on top.

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Since the start of the quarter, estimates have fallen 6% for EPS but increased 2% for revenue. Despite the decline estimates, profits are anticipated to increase and so are revenue. Amazon have been posting losses, ut is coming off three straight quarters of profitability.

Amazon Prime and the dominance of Amazon Web Services (AWS) is expected to carry the retailer this year. They have doubled it membership in Amazon Prime for the past two years, and that is up 54 million, and almost half of all adults in the U.S have Prime subscriptions.

AWS is the leading in the cloud infrastructure industry, representing about 30% of the market, and large enterprises such as Netflix have migrated to AWS to be its platform provider which validates their credibility and reliability.

A study showed that Amazon had a better catalogue of Prime Video movies on TV shows compared to Netflix. According to Barclays, Netflix`s overall catalog has experienced a slide of up to 28% over the past year.

Mark Fahey revealed that Amazon offered a better deal in terms of amount and quality of video streaming compare to Netflix. Additionally, it had more titles with high ratings from users, and quality is of more importance than quantity.

Having a platform with a great library is not enough while quality that is offering constantly refreshed content will be vital in the future. it`s a shift from licensing non-exclusive content to original series and movies that one can get anywhere else.

Netflix has a budget of $5 billion on content in 2016 and that number will rise to about $6 billion in 2017. That doesn`t mean the entertainment value will increase. While Amazon and Netflix are fighting we can see a third player in this game, and that is YouTube with its amazing content.

Amazon has expanded its web services in five new regions this year, including China, India, and the U.K. Heavy investments in global expansion on top of Google and Microsofts ascension in cloud computing will put pressure on Amazons margins.

Expected growth in cloud computing and IoT should make a great outlook for Amazon as they continue to expand their web services.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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