Can Netflix End DIS, CMCSA & VIAB's Theater Dominance?

CMCSA NFLX DIS

Netflix (NFLX - Free Report) has been one of the top performing stocks in the 10-year long bull run. Its ongoing evolution from being a pure play streaming company to a diversified media company is attractive from investors’ point of view. The company is reportedly showing interest in releasing movies, which have a unique appeal, at theaters ahead of its streaming platform.

However, Netflix will not find it easy to penetrate the space that is currently dominated by the likes of Disney (DIS - Free Report) , Comcast (CMCSA - Free Report) and Viacom . Moreover, Netflix might have to have to relax the timeframe of the theatrical release window to adhere to traditional distribution policies set by theaters.

Meanwhile, the streaming platform continues to benefit from its robust content, well supported by aggressive spending.

Moreover, binge viewing and low cost plans have been a key catalyst for the company’s massive returns. These factors drove Netflix’s subscriber base to 139.26 million globally at the end of 2018.

10-Year Returns

 

Netflix’s Theater Push May Bring Laurels

Netflix’s global theatrical releases will help the company reach a wider audience.

Moreover, the popularity of the content is likely to encourage repeat viewing on its streaming platform and increase monetization in areas like merchandise, toys and video games.

Theatrical releases will also help Netflix easily qualify for the Academy Awards nominations. To be eligible for the prestigious Oscar nominations a film should have a theatrical window of at least one to three weeks. 

Netflix, Inc. Revenue (TTM)

Notably, the company’s recent release Roma first released in theaters and went on to win the best foreign-language film at this year’s Golden Globes.

Disney Rules the Box Office

Disney, which has a solid IP, is a strong competitor. The strength of Disney Studios is evident as it dominated 2018 box office with global collections of $7.33 billion and domestic collections of $3.09 billion driven by successful run of Black Panther, Avengers: Infinity War and Incredibles 2 in global theaters.

The Walt Disney Company Revenue (TTM)

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