Comscore’s senior media analyst Paul Dergarabedian views streaming platforms such as Netflix Inc. (NASDAQ: NFLX) as complimentary, not antagonistic to movie theaters.
In an interview with CNBC on Friday, he said: “I believe they all work together. It’s this huge ecosystem.”
It’s partly because of this that NFLX has been able to hold its own, even though domestic box offices have improved significantly over the past few months.
The likes of “Mufasa, The Lion King” and “Nosferatu” helped push the US cinema revenues to an impressive $31.5 million for Christmas Day.
Netflix sets streaming records for Christmas
On Christmas Day, Americans went to the movies in huge numbers.
Netflix, the world’s largest streaming service, was also not sitting around.
Netflix was accessed by 65 million Americans on Christmas Day to view the exclusive NFL matches.
According to Nielsen, the two most-streamed NFL matches in US history were Kansas City Chiefs vs. Pittsburgh Steelers and Baltimore Ravens versus Houston Texans.
In a release issued today, Bela Bajaria, the Chief Content Officer of NFLX said: “We could not have given our members a better Christmas present than this day full of NFL games that broke all records.”
Netflix’s stock price is up by well over 90% since the beginning of 2024.
In 2025, advertisers may choose Netflix over other streaming services
Netflix Inc. has recently been committed to providing live sports for its users.
This Nasdaq-listed company has secured the exclusive broadcast rights for the FIFA Women’s World Cup in 2027 and also has agreements with WWE, Boxing1, NFL and the NFL.
According to industry executives, the strategy will be particularly profitable in the next year because advertisers are likely to favour media companies that have sports rights or live programming by 2025.
Media budgets don’t grow. In a recent article, Natalie Bastian explained that advertisers are now able to choose where they spend their advertising budgets. She is the Teads global chief marketing office.
Netflix does not pay dividends at the moment.
Netflix Stock: Is it possible to get more upside?
Jeffrey Wlodarczak, of Pivotal Research, raised the price target for Netflix last month from $1100 to $1100.
He believes that there is still a potential of 23% more growth.
Wlodarczak, a researcher, told clients that Netflix would be able to provide more compelling programming to households if it increased its eventized live offerings.
Pivotal Research’s analyst expects NFLX will also opt for a split of its stock in 2025. This move does not increase the value of the stock, but it is more accessible to smaller investors.
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