Comscore’s senior media analyst Paul Dergarabedian sees streaming platforms, including Netflix Inc (NASDAQ: NFLX), as complementary not adversarial for movie theatres.
“I think they all work together; it’s this giant ecosystem,” he told CNBC in an interview on Friday.
That’s part of the reason why NFLX is keeping its own even though the domestic box office has improved rather significantly in recent months.
In fact, the likes of ‘Mufasa: The Lion King’ and ‘Nosferatu’ helped pushed the US cinema revenue to a solid $31.5 million on Christmas Day.
Netflix set streaming records on Christmas Day
Americans flocked to movie theatres in large numbers on Christmas Day.
Meanwhile, the streaming giant Netflix wasn’t sitting on its hands either.
Nearly 65 million people in the US logged into Netflix to watch the two exclusive NFL games on Christmas Day.
Baltimore Ravens versus Houston Texans and Kansas City Chiefs versus Pittsburgh Steelers were actually the most streamed NFL games in the history of the United States, according to Nielsen.
“Bringing our members this record-breaking day of NFL games was the best Christmas gift we could have delivered,” said Bela Bajaria – the chief content officer of NFLX in a press release today.
Netflix stock is currently up well over 90% versus the start of 2024.
Advertisers may prefer Netflix in 2025
Netflix Inc has been fully committed to bringing live sports to its viewers of late.
The Nasdaq listed firm has already secured exclusive rights to broadcast the 2027 FIFA Women’s World Cup and has deals in place with the WWE, boxing1, and NFL as well.
The strategy could prove particularly lucrative in the coming year as advertisers will likely favour media companies with sports rights and live programming in 2025, as per the industry executives.
“Media budgets aren’t growing. So, there’s just more selection into where [advertisers are] spending their money,” Natalie Bastian revealed in a recent interview. She’s the global chief marketing officer at Teads.
Netflix stock does not currently pay a dividend, though.
Is there any further upside left in Netflix stock?
Sports rights and live programming also made up for reasons why Jeffrey Wlodarczak of Pivotal Research raised his price target on Netflix stock last month to $1,100.
His forecast indicates potential for another 23% upside from here.
“Given the success of Tyson/Paul fight, we expect Netflix to accelerate its offerings of eventized live programming, which further enhances its ability to offer households regular compelling content,” Wlodarczak told clients in a research note.
The Pivotal Research analyst also expects NFLX to opt for a stock split in 2025. While such a move doesn’t augment the company’s underlying value, it makes the stock more affordable for smaller investors, thereby attracting a broader base of shareholders.
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