Back to top

Netflix Greenlights Second Season of The Kominsky Method

Read MoreHide Full Article

Netflix’s (NFLX - Free Report) recent comedy hit, The Kominsky Method, is all geared up for a second season. The upcoming season will consist of eight episodes, similar to the first, and production is expected to begin by the end of this month in Los Angeles.

The renewal looks like a perfect opportunity for the company to cash in on the success of the first series and add to its subscriber base. Additionally, many users expressed their interest for a second season on Twitter, which reflects popularity of the show.

The Kominsky Method is Netflix’s first comedy series to win an award for best comedy or musical at the recent Golden Globes.

Netflix’s focus on quality originals — both movies and TV shows — is the primary reason behind the company’s growing award slate. Moreover, content strength and quality is driving user base. Notably, Netflix added 29 million subscribers in 2018 compared with 22 million in 2017.

Netflix, Inc. Revenue (TTM)

Netflix, Inc. Revenue (TTM) | Netflix, Inc. Quote

Netflix Climbs the Content Ladder

Netflix is aggressively investing in original content, especially when the company’s originals account for the “vast majority” of the content watched on its platform, per management.

On its last earnings call, the company noted that content spend will further shoot up this year. Notably, Netflix is looking to reduce its dependence on licensed programming and include more original content.

Additionally, even with the recent subscription price hike, about 71% of the users noted that they will continue with Netflix subscription, per Streaming Observer. Moreover, only 3% confirmed to canceling plans.

This strengthens the belief that Netflix is still a dominant player, primarily due to its early focus on original content. Other players like Disney (DIS - Free Report) , Apple (AAPL - Free Report) and AT&T’s Warner Bros. are investing heavily now, ahead of the launch of their respective streaming services in 2019.

Further, Tom Rogers, a former NBC Executive, is very optimist about Netflix and thinks that nobody can catch up with the streaming giant. This comes at a time when Comcast (CMCSA - Free Report) owned NBCUniversal announced the launch of a free streaming service in early 2020.

Competition Intensifying

For companies like Disney and Warner Bros., which rule the box office, pouring investments in content may not be too hard. Additionally, Disney’s worldwide popular franchises like Marvel Studios and Star Wars among others are likely to attract users to its content offerings.

Moreover, CBS recently announced that it will soon pull its films from the theaters and exclusively showcase them on its streaming service due to the easy and quick reach provided by streaming platforms. This is likely to increase competition in the streaming market.

Nevertheless, Netflix’s content strength and expanding portfolio provides a competitive edge. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Published in