Tag Archives: nflx

Amazon Seen Prepping Cable-TV-Like Web Service, Live Content

Amazon.com ( AMZN ) is moving closer to launching a live TV streaming service to complement its Prime video service, which offers movies and on-demand content, analysts speculate in the wake of media companies’ earnings calls. In the pay-TV industry, “virtual MVPD” (multi-channel video programming distributor) is a term for a cable-TV-like service delivered via the Internet. “Amazon appears most likely to launch a virtual MVPD in 2016,” Pacific Crest Securities analyst Andy Hargreaves said in a research report. “Amazon was hinted at multiple times throughout the quarter as being in negotiations with content providers in the hopes of launching a video product in the future.” AMC Networks ( AMCX ) referred to ongoing “experimentation” at Amazon on its Q4 earnings call on Feb. 25. Walt Disney ( DIS ), meanwhile, mentioned Amazon while discussing ESPN’s streaming strategy on Feb. 17. Satellite TV broadcaster Dish Network ( DISH ) has more than 500,000 subscribers to its “Sling” Web TV service, launched in early 2015, analysts estimate. However, Sling does not offer live content from the four major broadcast networks (ABC, CBS, Fox and NBC). Bloomberg reported in October that Amazon was in talks with Comcast ’s ( CMCSA ) NBCUniversal, CBS ( CBS ) and others. Amazon’s challenge would be aggregating content licensed from major programming networks. Apple ( AAPL ) reportedly has, for now, broken off talks with the broadcast networks for a Web TV service. If Amazon’s offers live content, it would set itself apart from Netflix ( NFLX ) and Hulu, both of which do not. Amazon, like Netflix, has already moved into producing original content. One Amazon strategy could be licensing content for current seasons of popular programming now available mainly from pay-TV companies. Federal regulators are probing the influence of cable TV companies over content deals, the Wall Street Journal reported Sunday. In a report in mid-February, Jefferies noted that Amazon’s Prime video service offers the most content from CBS, including “Vegas.” Its on-demand shows, though, are from prior broadcast seasons. “Relative to Netflix and Hulu, Amazon Prime carries significantly less network programming,” said the Jefferies report. “Overall, the platform only carries nine fall shows aired between 2012 and 2015, six of which aired on CBS.” Amazon in 2015  licensed season-one episodes from NBCUniversal’s hit, “Mr. Robot,” which airs on the USA Network. Amazon also signed content deals with AMC Networks and Time Warner ( TWX ) for six seasons of HBO’s “Sex and the City.”

Netflix Growth Potential Underestimated, Analyst Says

Netflix ( NFLX ) stock has been beaten down by concerns of rising costs and competition, but 2016 will be the year the streaming video service proves its global business model, Pacific Crest Securities analyst Andy Hargreaves said in a report Tuesday. “Netflix’s seamless global distribution is a structural competitive advantage that is likely to provide efficiency advantages that compound over time,” Hargreaves said. “This should drive share gains and profit growth in excess of current expectations.” He rates Netflix stock as overweight with a price target of 140. Netflix’s all-time high is 133.27, reached on Dec. 7. Netflix was down more than 1% to near 88 in morning trading on the stock market today . Hargreaves expects Netflix to add 21.5 million global subscribers in 2016, up from 17.4 million a year ago and ahead of consensus expectations for 19.1 million. Netflix ended 2015 with 74.76 million streaming subscribers worldwide. Netflix could hit 195 million subscribers worldwide by 2024, he said. “2016 should show the advantages of Netflix’s global business model,” Hargreaves said. “Netflix’s business model is based on centralized costs with limited variable cost per geography. . . . Global distribution provides a data feedback loop that should allow Netflix to invest in content, marketing and product development more efficiently than key competitors.” Hargreaves estimates that Netflix will add 20.5 million new subscribers in 2017, vs. consensus expectations for 19 million. Netflix competes with Amazon.com ( AMZN ) and Hulu, among others. RELATED:  Netflix Stock Downgraded As Risks And Spending Increase

Amazon Stock Retakes Critical Level; Netflix Trips Bearish Signal

Loading the player… Leading tech stocks have lagged so far this year, as the overall market has not performed well. But now that the market is pivoting higher, it’s worth taking a fresh look at those big-cap tech names. Let’s check back in with the FANG stocks: Facebook ( FB ), Amazon ( AMZN ), Netflix ( NFLX ) and Google parent Alphabet ( GOOGL ). Amazon gapped up almost 5% to retake the critical 200-day line in slightly below-average volume. Shares breached that level in the days following Amazon’s last quarterly report, when its results missed estimates. The stock is now trading less than 20% below its all-time high, reached at the end of last year. The e-commerce giant on Monday raised the minimum order threshold for free shipping, amid a rise in shipping costs. Customers who are not Prime members must have orders of at least $49, up from the prior minimum of $35. The move could push more consumers to buy Amazon’s $99 annual Prime membership. Netflix gained 3% Monday, but its 50-day and 200-day lines are converging, which is very bearish. Volume was lighter than average. The technical sign comes as the stock has underperformed over the last several months. In January, Netflix announced a global expansion, and it’s continually adding new original content. But some analysts say that Hulu could challenge Netflix as it expands and invests in its own content. Facebook shares moved 2.5% higher Monday in average trade after regaining support at its 50-day line last week. The stock broke out of a base on earnings last month, but it reversed lower off of a new all-time high shortly after, as the market continued to sell off. Facebook CEO Mark Zuckerberg said over the weekend at this year’s Mobile World Congress that virtual reality is “the next platform.” The company’s Oculus Rift headset is priced at $599 dollars, cheaper than the just-announced $799 dollar price tag for the competing HTC Vive. Meanwhile, Alphabet rose 1% in below-average volume. The stock is trading below its 50-day line and about 10% below its high reached in early February.