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Netflix Severs Ties With Marvel, Cancels Two Superhero Shows

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Netflix (NFLX - Free Report) has cancelled superhero shows — The Punisher and Jessica Jones — as the streaming giant ends the five-year old licensing partnership with Marvel. Notably, Disney (DIS - Free Report) , owner of Marvel, is expected to launch its own video streaming service, Disney+, in 2019.

Netflix’s latest move follows the cancellation of Daredevil, Luke Cage and IronFist shows last year. While The Punisher will not return for a third season, the upcoming third season of Jessica Jones will be the final one, per the company.

Netflix’s Expanding Content Portfolio: Key Catalyst

Netflix has been focusing on developing its own home-grown shows instead of licensed content. The company recently launched a new superhero series The Umbrella Academy and is also developing superhero drama Jupiter’s Legacy based on characters created by Mark Millar.

Moreover, it is developing Reborn, a Millarworld comic book adaptation, starring Sandra Bullock and directed by The Lego Batman filmmaker, Chris McKay.  Notably, Netflix acquired Millarworld in August 2017.

Netflix has significant depth in its content pipeline for 2019 that includes thriller (What/If), sitcom (Mr. Iglesias), sci-fi/horror (Daybreak), dramedy (Russian Doll), adult anime series (Rilakkuma and Kaoru), nature documentary (Our Planet), crime dramas (Nowhere Man), music-competition (Rhythm + Flow) and others.

Further, Netflix is expanding its family content with the addition of at least six animated shows and movies, including Maya and the Three, Kid Cosmic, Trash Truck, Go! Go! Cory Carson, My Father's Dragon and The Willoughbys. These will be available on Netflix through 2019 and 2020.
 

Netflix, Inc. Price and Consensus

Netflix, Inc. Price and Consensus | Netflix, Inc. Quote

 

Netflix is also set to launch Green Eggs and Ham that will star Adam Devine as Sam I Am and Michael Douglas as Guy I Am. The company has also ordered War for Cybertron, which is based on the Transformers series. The new animated series will be available in 2020.

Netflix has also green signalled a second season for The Kominsky Method. The comedy series won an award for best comedy or musical at the recent Golden Globes.

Notably, Netflix recently announced that the remaining eight episodes of Arrested Development’s fifth season will be available from Mar 5. The company will also stream the much anticipated Breaking Bad movie, before AMC, which reflects growing appeal of the streaming platform.

Netflix’s Content Strength Likely to Steer Away Competition

Competition is intensifying in the streaming space, with upcoming services from the likes of Apple (AAPL - Free Report) , Disney, AT&T’s WarnerMedia and Comcast (CMCSA - Free Report) owned NBCUniversal.

Disney is expected to include Marvel’s content into its Disney+ and Hulu services. Notably, Disney, which currently holds 30% stake in Hulu, is entitled to another 30% stake after acquiring Fox. Comcast owns 30% stake in Hulu and the remaining 10% in AT&T.

Moreover, Apple is expected to launch its much-anticipated video streaming service in April or early May. The video service is likely to comprise a generous dose of free original programming (reportedly for Apple device holders) along with subscription-based streaming offerings like CBS Showtime, Lions Gate’s Starz and Viacom.

Apart from Disney and Apple, Amazon is also strengthening its content portfolio by investing heavily on regional content.

Nevertheless, Netflix’s content strength, aggressive investment in original content and partnerships with telcos in Spain, Japan, the United States, and the U.K. are likely to steer away competition.

Netflix currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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