Analysts say gambling and shopping won’t save Netflix

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Despite increased competition in streaming wars, Bank of America analysts said on Tuesday they saw Netflix remain the king of content and predict Los Gatos shares will rise to $ 680 per share by the same time next year.


Netflix was trading around $ 541 at noon Tuesday.

The streaming wars are in the midst of a wave of consolidation. Amazon paid for MGM in late May, following a mega-merger between WarnerMedia, which runs HBO Max, and Discovery. Both agreements remain subject to regulatory approval.

To keep pace, analysts at BofA said in a research report that they suspected Netflix was considering franchises and other intellectual property that it could turn into new movies and shows to bolster its selection. It would be the opposite approach that its competitor Amazon took it when it spent $ 8.45 billion to gobble up MGM studios for content from the Hollywood studio’s iconic library.

Netflix has deepened into e-commerce, in an effort to gain an edge over other streamers, but analysts are not impressed.

This spring, Netflix has opened a new online store, which sells equipment such as clothing and action figures related to some of its content. And the streaming giant is reportedly looking to hire game executives, like reported by L’Information. But analysts said none of these moves would likely give them a head start.

Movies and series

Netflix will host several new films each year from its recently announced multi-year partnership with Steven Spielberg’s production studio Amblin Partners. Analysts applauded the deal, calling it “instrumental” to bolster Netflix’s film pipeline. They also called the second seasons of “Lupine” (debuted in June), “Bridgerton” and “The Witcher” (both launching later this year) as Netflix’s most important original content right now.

Later, analysts watch what might happen UK government plans to regulate US streaming services. It is not known what changes will result, but analysts have pointed to the British Culture Secretary’s fears that some viewers may regard the hit series “The Crown” as fictional. The government’s plans are expected to be announced later this week.

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