Netflix valuation, a House of Cards?

Worldwide fans of Congressman Francis Underwood’s adventures are going nuts for the release of Season 3. Yet the market is not impressed: NFLX share price dropped by 1.68% on the same day.

In fact, analyst widely agree Netflix current valuation (Nasdaq: NFLX) depends heavily on its ability on creating quality original programming and marketing them effectively. The uncertainty on future strategy which causes high volatility and recently determined a fully recovered sharp 26.4% drop needs to be addressed more clearly.

Netflix said its 320 hours of original programming in 2015 actually cost less than most of its licensed content. “We try to make each project more efficient and effective than studio content we’d otherwise be licensing,” the company said in its fourth-quarter investor letter.

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For its part, Netflix has been transparent about its ramp-up in spending for original content that brought 45 Emmy, 10 Golden Globe and two Academy Award nominations and several wins in just two years. “We will continue to grow the percentage of our content spending dedicated to originals for the next several years,” the company said. Continue reading “Netflix valuation, a House of Cards?”

“Netflix rhymes with Wet Chicks” for Sandler, means an opportunity for all

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Any game changes and evolves, so players’ attitude, and laws and regulations need to evolve accordingly.

The primary game changer Netflix has just announced, right after declaring that the first day-and-date worldwide release of a blockbuster will happen soon, that they are going to produce and distribute as soon as 2015 four feature films starring Adam Sandler, therefore coining the term web film, which is a film meant specifically for online distribution. Continue reading ““Netflix rhymes with Wet Chicks” for Sandler, means an opportunity for all”

Day-and-date release, Bubble or Tiger?

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The Weinstein Company planning worldwide day-and-date release on Netflix and IMAX theaters of Crouching Tiger, Hidden Dragon sequel is nothing new to the industry practice.

The first noticeable (because of the combination of a high-profile director and the backing of maverick billionaires Todd Wagner and Mark Cuban) example of such strategy was in 2006 when Magnolia Pictures released the Steven Soderbergh’s movie Bubble simultaneously to theaters and cable television channel HDNet Movies, whereas four days after they released the DVD. Continue reading “Day-and-date release, Bubble or Tiger?”