Needham analyst Laura Martin says her channel checks this month suggest audiences have pivoted toward news. This benefits streamers that air news, and Netflix (NFLX) does not, Martin tells investors in a research note titled “Falling Hours. NFLX Must Add Ads.” The analyst believes the “Streaming Wars” are in the seventh inning. Based on consumer adoption, monetization, pricing strategy, bundling options and deep pockets, the winners so far are Amazon Prime Video (AMZN) and the Disney (DIS) bundle, writes the analyst. Martin notes that Amazon and Apple (AAPL) are buying exclusive sports rights, implying live sports are the “next competitive battlefield.” Netflix will lose to Discovery, HBO Max/Warner, Paramount, Peacock, Apple or others unless it adds live sports and news to its content lineup, and returns to U.S. subscriber growth by adding an “ad-lite” subscription video on demand tier “like EVERY other streaming competitor,” contends Martin. She keeps an Underperform rating on Netflix without a price target.
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