We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Reviews Sandler Deal, Adds Four More Films
Read MoreHide Full Article
Netflix, Inc. (NFLX - Free Report) has decided to expand its deal with one of the leading comedians Adam Sandler, per media reports.
On Oct 2014, Netflix entered into an agreement with Sandler for making four films for exclusive release only on Netflix. But now, the company has reviewed the deal and Sandler will be making four more films for the company.
Adam Sandler’s production Happy Madison Productions will produce the original films, which will have its exclusive premiere on the streaming giant.
Why the Deal Expansion?
Per Netflix, the first two movies of Sandler, “The Ridiculous 6” and “The Do-Over” were extremely successful on its platform and attracted a good number of subscribers around the world. The third movie “Sandy Wexler” will release on Apr 14.
Sandler is extremely popular on the big screen as his audience spans all age brackets. Though many of his recent movies like Blended haven’t done well, the “Hotel Transylvania” series, where he voices Count Dracula, has made more than $830 million at the box office. The “Grown Ups” sequel, released in 2013, was also a blockbuster success with over $250 million in ticket sales.
All these factors have led Netflix to reconsider the deal with Sandler and extend it by another four.
Netflix has been aggressively working on expanding its movie business. A few days back, the company hired Scott Stuber, the famous Hollywood producer and ex-Universal executive, to spearhead its movie business. Netflix plans to release 30 original films in 2017.
Netflix’s focus on global expansion and original content has paid off with the streaming giant adding 7.05 million net new subscribers in the last reported quarter, taking the total count to 19 million for 2016. Moreover, for the first time, Netflix expects the International segment to post profits in the first quarter to the tune of $16 million. Netflix remains committed to make 50% of its total content original over the next few years. It estimates content spending in 2017 to be around $6 billion.
All this has been well reflected in its share price movement. In the past one year, Netflix gained 40.3% compared with the Zacks Broadcasting-Radio/TV industry’s gain of 15.2%.
We note that there has been a shift in viewers’ preference. More and more people are inclined toward watching movies in the comfort of their homes rather than taking the trouble to go the theaters. With binge viewing catching up fast, there is substantial opportunity for Netflix.
However, stiff competition from other streaming services like Amazon (AMZN - Free Report) Prime and Hulu is a concern
Currently, Netflix carries a Zacks Rank #3 (Hold).
Notably, the Zacks Consensus Estimate for ITV’s current year has reduced to $1.99 from $2.04 over the last 30 days whereas the same for British Sky Broadcasting Group has remained stable at $2.92 over the last 30 days.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Reviews Sandler Deal, Adds Four More Films
Netflix, Inc. (NFLX - Free Report) has decided to expand its deal with one of the leading comedians Adam Sandler, per media reports.
On Oct 2014, Netflix entered into an agreement with Sandler for making four films for exclusive release only on Netflix. But now, the company has reviewed the deal and Sandler will be making four more films for the company.
Adam Sandler’s production Happy Madison Productions will produce the original films, which will have its exclusive premiere on the streaming giant.
Why the Deal Expansion?
Per Netflix, the first two movies of Sandler, “The Ridiculous 6” and “The Do-Over” were extremely successful on its platform and attracted a good number of subscribers around the world. The third movie “Sandy Wexler” will release on Apr 14.
Sandler is extremely popular on the big screen as his audience spans all age brackets. Though many of his recent movies like Blended haven’t done well, the “Hotel Transylvania” series, where he voices Count Dracula, has made more than $830 million at the box office. The “Grown Ups” sequel, released in 2013, was also a blockbuster success with over $250 million in ticket sales.
All these factors have led Netflix to reconsider the deal with Sandler and extend it by another four.
Netflix, Inc. Price
Netflix, Inc. Price | Netflix, Inc. Quote
Netflix has been aggressively working on expanding its movie business. A few days back, the company hired Scott Stuber, the famous Hollywood producer and ex-Universal executive, to spearhead its movie business. Netflix plans to release 30 original films in 2017.
Netflix’s focus on global expansion and original content has paid off with the streaming giant adding 7.05 million net new subscribers in the last reported quarter, taking the total count to 19 million for 2016. Moreover, for the first time, Netflix expects the International segment to post profits in the first quarter to the tune of $16 million. Netflix remains committed to make 50% of its total content original over the next few years. It estimates content spending in 2017 to be around $6 billion.
All this has been well reflected in its share price movement. In the past one year, Netflix gained 40.3% compared with the Zacks Broadcasting-Radio/TV industry’s gain of 15.2%.
We note that there has been a shift in viewers’ preference. More and more people are inclined toward watching movies in the comfort of their homes rather than taking the trouble to go the theaters. With binge viewing catching up fast, there is substantial opportunity for Netflix.
However, stiff competition from other streaming services like Amazon (AMZN - Free Report) Prime and Hulu is a concern
Currently, Netflix carries a Zacks Rank #3 (Hold).
Key Picks
Two better-ranked stocks in the broader technology space include ITV Plc (ITVPY - Free Report) and British Sky Broadcast Group . Both have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Notably, the Zacks Consensus Estimate for ITV’s current year has reduced to $1.99 from $2.04 over the last 30 days whereas the same for British Sky Broadcasting Group has remained stable at $2.92 over the last 30 days.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>