Tag Archives: nflx

Netflix Gaining In Europe, But Faces Regulatory Mandates

Netflix ( NFLX ) is successfully fending off a host of rivals in Europe thanks to its mix of Hollywood and local content, analysts say. After examining the online video markets in the U.K., Germany, France, Italy and Spain, investment bank UBS concluded that Netflix is well positioned for growth. “We think Netflix is doing quite well across Europe despite intense focus from local competitors in each market, not to mention competition with Amazon ( AMZN ), who was earlier to enter the U.K. and Germany,” UBS analyst Doug Mitchelson said in a research report Sunday. Mitchelson reiterated his buy rating on Netflix stock, with a 12-month price target of 141. Netflix stock was up 2%, near 94.50, in afternoon trading on the stock market today , but it has been trading below its 50-day moving average since posting disappointing earnings last month. Netflix’s early success in foreign markets comes as the company is ramping up production of original shows in local languages. “Management continues to suggest that only about 20% of international viewing is from local content and that U.S. content continues to travel well everywhere, including in the rest of world markets launched this year,” Mitchelson said. “Thus, we expect Netflix to continue to focus the majority of its content budget on U.S. content, though increasingly originals and almost exclusively content with global rights.” Europe Seeking More Local Content From Video Services Last week, the Financial Times reported that Netflix and other on-demand video services could be forced to devote at least 20% of their catalogs to European movies and TV shows as part of an overhaul of the EU’s broadcasting rules. The services also would be required to prominently display European content. Streaming video services currently are not covered by laws that require national broadcasters to ensure that the majority of their content is European. Those same regulations force broadcasters to contribute financially to the production of European films and TV shows. Netflix has opposed the proposed regulations, the FT reported. Investors are increasingly focused on Netflix’s international growth, as its service nears the saturation point in the U.S., Piper Jaffray analyst Michael Olson said in a report Monday. He rates Netflix stock as overweight, with a price target of 122. “While in calendar year 2016 we expect international will account for 35% of revenue, we are modeling 50% by 2020,” Olson said. RBC Capital Markets analyst Mark Mahaney on Sunday maintained his outperform rating on Netflix stock, with a price target of 140. RBC’s recent surveys of online users found strong usage and high satisfaction for Netflix in the U.S. and rising demand in France and Germany, Mahaney said. RELATED: Netflix Signs Programming Deal With Hispanic TV Leader Univision

Apple Rival Xiaomi Coming To U.S. With Android Set-Top TV Box

Xiaomi, Apple ’s ( AAPL ) Chinese smartphone rival, this year plans to launch a 4K TV streaming device in the U.S. featuring Google’s Android software. Xiaomi made the announcement at Alphabet ‘s ( GOOGL ) Google I/O developer’s conference on Wednesday. The item will compete with Roku, Amazon.com ’s ( AMZN ) Fire TV devices, Apple’s set-top box and Google’s own Chromecast streaming sticks, as well as Web-connected TV sets featuring Google’s Android software. Xiaomi’s Android-based TV system will be its first hardware product sold in the U.S. Xiaomi’s online store so far has sold only accessories in the U.S. However, Xiaomi has sold set-top TV boxes in Asia that stream HD-quality video. Hugo Barra, vice president for global at Xiaomi, joined the company in 2013 after leaving Google, where he had worked on mobile products and the Android mobile operating system. “This is a significant milestone for Xiaomi,” Barra said in a statement released at Google I/O . Xiaomi’s 4K streaming device will provide apps such as Netflix ( NFLX ) and YouTube, as well as Dish Network ’s ( DISH ) Sling Web TV service. In China, Xiaomi will be one of the first smartphone makers to feature virtual-reality technology that Google has put into Android N, the new version of its mobile operating system. Samsung and HTC also plan to sell Android-based mobile phones with the VR mode. Xiaomi was the top smartphone seller in China in Q4, followed closely by China’s Huawei, with Apple down at No. 3.

Here’s Why Apple Should Be More Like Netflix

Loading the player… Amid slowing iPhone sales, Apple ( AAPL ) should take a page from Netflix’s ( NFLX ) playbook and go with the subscription model, according to a Bernstein report out Wednesday. With the cost of owning and using an iPhone averaging at about $3 a day, Bernstein says Apple could offer its products to customers as a bundled monthly service instead of single purchases of more than $700 every few years. The analyst believes customers could get more services from an Apple subscription bundle at a cheaper cost than their Internet and cable bills. Apple shares closed up 1.2% in above-average volume after testing support at the 10-day line in Tuesday’s session. The stock still has a lot of recovering to do after crumbling to its lowest level in nearly two years just last week, in the wake of the company’s disappointing quarterly earnings report. Apple is 28% below its all-time high reached in April 2015. Meanwhile, Netflix is looking to retake its 10-day line, an area the stock has struggled to stay above in the aftermath of its disappointing Q2 subscriber addition guidance about a month ago. Shares are trading 32% below their all-time high reached last December, but finished 2.1% higher Wednesday. Another big tech company benefiting from the subscription model is Amazon ( AMZN ). The e-commerce giant’s Amazon Prime service costs $99 dollars a year and is growing in popularity. Amazon also recently rolled out a monthly Prime membership for $10.99 a month and a video-only subscription for $8.99 a month. Amazon is looking for support at its 10-day line. The stock tried to climb back above the 700 price level in intraday trade but reversed lower by the afternoon, then ended up 0.3% at 697.45. Shares are 3% below their all-time high reached last week and extended 16% past a cup-with-handle buy point it initially cleared just a few weeks before the company’s latest quarterly report.