Back to top

Image: Bigstock

Netflix Falters at Golden Globe, HBO, Comcast & Sony Win Big

Read MoreHide Full Article

The 77th Golden Globe Awards reflected the transformation of the streaming space driven by ongoing digitization of entertainment and cord cutting becoming an undeniable reality.

In a bid to make the most of the evolving trends in the entertainment industry, Netflix (NFLX - Free Report) and its peer studios and streaming players including Comcast’s (CMCSA - Free Report) Universal Studios, AT&T (T - Free Report) owned HBO, Amazon, Apple, Disney, Hulu, and Sony (SNE - Free Report) , are leaving no stone unturned to create original content.

At the awards show, Netflix put up a solid performance with 34 nominations (17 each for film and TV series categories), the most for a company.

However, the streaming services giant had to be content with two wins (one each for film and TV series). Notably, Marriage Story actress Laura Dern bagged “Best Performance by an Actress in a Supporting Role in any Motion Picture.”

HBO, Comcast, Sony Win the Most

Sam Mendes directed World War I-based 1917, helped Universal Pictures in grabbing two major awards: “Best Motion Picture – Drama” and “Best Director - Motion Picture.”

Meanwhile, Sony Pictures’ Once Upon a Time in Hollywood garnered three wins.

Netflix’s second win came for “Best Performance by an Actress In A Television Series – Drama” category, wherein Olivia Colman clinched the award for her lead role in The Crown, a British drama series.


However, this thwarted Apple TV+’s The Morning Show starrers Jennifer Aniston and Reese Witherspoon, in the same nomination category. Notably, The Morning Show enabled Apple earn its first-ever Golden Globe nominations.

Notably, HBO put up a stellar fight in TV series category, outperforming Netflix, with four wins (two each for Chernobyl and Succession) from 15 nominations.

Moreover, Amazon prime video’s Phoebe Waller-Bridge starrer British TV series, Fleabag, clinched two awards, coming ahead of Netflix in the TV series vertical. Hulu’s Ramy bagged one award.

Significant Prospects in the Streaming Space

Notably, the global video streaming market is expected to hit $687.2 billion by 2024, witnessing a CAGR of 18.8% from 2019 to 2024, per VynZ Research data. Moreover, average revenue per user (ARPU) is expected to reach $98.19 in 2020 in the United States compared with $94.70 in 2019, per Statista.

Given the scope for growth in the market, all the players are ramping up their efforts to boost subscriber base. Most of the players are investing heavily in developing original content that has become a differentiator for attracting new subscribers.

The aggressive investments in studios have also transformed Hollywood economics.

Moreover, the growing involvement of well-known Hollywood stars definitely makes the movies and shows more attractive. Further, endeavors to offer content catering to various genres is expected to bolster user engagement.

Wrapping Up

Netflix’s subscriber base growth is declining, as companies including Disney, Apple, WarnerMedia and NBCUniversal, vie for a share gains in the streaming market.

Notably, Netflix added 6.8 million subscribers in the last reported quarter. At the end of the quarter, the company had 158.33 million paid subscribers globally, up 21.4% from the year-ago quarter.

The company expects to have 165.93 million paid subscribers globally, up 19.2% from the year-ago quarter, in fourth-quarter 2019. Netflix expects to add 7.60 million paid subscribers, lower than 8.8 million added in the year-ago quarter.

This Zacks Rank #3 (Hold) company is investing heavily to boost international subscriber base. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, higher streaming content obligation and increased spending are expected to hurt cash flow generation.

More Stock News: This Is Bigger than the iPhone!                   

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.  

Click here for the 6 trades >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Netflix, Inc. (NFLX) - free report >>

AT&T Inc. (T) - free report >>

Sony Corporation (SNE) - free report >>

Comcast Corporation (CMCSA) - free report >>

Published in