In today’s news of Emmy nominations, Netflix (NFLX - Free Report) surpassed HBO’s 108 nominations with 112 of its own, the highest the company has ever seen.
It’s been clear for a while now, but Netflix seems to be the dominating force in television. Here’s a closer look at how Netflix’s dominance has affected the entertainment industry.
HBO Mimicking Netflix?
John Stankey, AT&T’s (T - Free Report) head of Warner Media wants to take HBO in a new direction after its merger with Time Warner . He suggested to his employees that HBO should become more of mainstream service that caters to a wide audience, sounding very much so like what Netflix does.
Netflix is a company which invests both in quantity and quality. If HBO is choosing to follow in Netflix’s path, then that could potentially mean the company would have to focus on quantity more heavily.
Netflix’s attitude of creating countless shows for its users and always having new content out is what makes it so popular amongst consumers. On the other hand, HBO will come out with one hit during the year, which stimulates some but is not enough response to keep fans engaged.
NFLX is worth almost $180 billion with its stock currently at $413.50 per share. This compares to traditional media companies like Disney (DIS - Free Report) , which is valued at $153 billion. Other tech companies like Amazon (AMZN - Free Report) and Hulu are also looking to bolster their streaming services to compete with the likes of Netflix.
How Does Netflix Do It?
In this year’s nominations, Netflix took over a wide breath of genres, with 40 total shows earnings nods. The thing that puzzles other media companies is how they manage to be so popular. Yes, it’s true that Netflix creates an insane amount of content, but the company also uses advertising to its advantage.
According to The New York Times, Netflix opened up a space in May & June in Los Angeles which held many events for crowds that it hoped would include some Emmy voters. Recently, it has also bought some billboards along the Sunset Strip for more advertising award purposes.
Netflix is expected to release its quarterly report this upcoming Monday. According to Zacks Consensus Estimates, the EPS forecast for the quarter is $0.80 per share as opposed to last years $0.15. Currently, investors have high hopes about this company seeing how well it’s been doing. Analysts expect revenue of almost $4 billion, an increase of 41.2% year over year.
Investors can be grateful for these rising numbers due to Netflix’s continued subscriber growth and content creation. Customers are willing to pay the price for this streaming service due to its great content.
Netflix has, thus far, surpassed expectations in every area that it could. It has left major media companies in the dust and continues to do so, and being the highest Emmy-nominated streaming service proves that further.
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