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From: Glenn Petersen6/28/2017 12:12:46 AM
   of 1744
A setback in China:

Netflix’s ‘BoJack Horseman’ Pulled Off China Site After Two Days

Bloomberg News
June 27, 2017

-- IQiyi had debuted Netflix original ‘BoJack Horseman’ in China

-- Netflix, iQiyi reached landmark deal in April on licensing

BoJack Horseman
Source: Netflix

Days after Netflix Inc. made its China debut via a content licensing deal with the country’s biggest streaming service iQiyi, one of its original comedy series was removed from the site.

All three episodes of the animated comedy “BoJack Horseman,” which debuted on June 19, were taken off the streaming site, iQiyi said in an emailed response to Bloomberg queries Tuesday. “Adjustments need to be made to the content," iQiyi said, without elaborating. Netflix couldn’t immediately be reached for comment outside of regular business hours.

Last week’s removal of "BoJack Horseman" -- a popular dark comedy centering on a washed up half-man, half-horse sitcom actor -- is a setback to Netflix’s entry into China, one of the few countries it had yet to penetrate. China’s media regulator censors content broadcast on the Internet and has previously ordered streaming sites to take down some imported shows. In 2014, several TV dramas including Warner Bros. Entertainment Inc.’s “The Big Bang Theory,” were taken off the air.

Netflix’s deal with iQiyi also covers television dramas, documentaries and variety shows. The documentary “Making a Murderer” and “Chef’s Table” series, both of which were released this month, were available on iQiyi as of Tuesday. Netflix and iQiyi also said they aim to release “Mindhunter” and the second season of “Stranger Things” simultaneously, according to a separate iQiyi statement.

Read more about Netflix landing its first China licensing deal with iQiyi here.

Last week, China’s State Administration of Press, Publication Radio, Film and Television ordered services including Weibo, China’s Twitter, to stop broadcasting what it said was negative commentary in violation of government regulations.

Yang Xianghua, senior vice president of iQiyi, said in an interview in Shanghai last week, before "BoJack Horseman" was pulled, that in order to get content released concurrently in China, Netflix would need to leave enough lead time for Chinese authorities to censor the shows.

"The approval process is a bit long in China, takes at least a month," said Yang, who headed iQiyi’s licensing negotiations with Netflix.

— With assistance by Jing Yang De Morel

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From: Glenn Petersen7/15/2017 9:49:04 AM
2 Recommendations   of 1744
Did Netflix Cash In On Its ‘Strongest Content Quarter Ever’?

The streaming video company had several hit shows, and analysts think that helped it woo more subscribers.

By Emily Bary
July 14, 2017 1:01 p.m. ET

Wall Street thinks there are multiple reasons why Netflix is likely to announce considerable growth in its U.S. subscriber base when it reports quarterly earnings Monday. High-school drama 13 Reasons Why is probably the biggest, but it isn’t the only one.

The show, which premiered March 31, generated especially strong social-media buzz and search traffic. “We expect Netflix to call out 13 Reasons Why,” Doug Anmuth wrote this week, since it performed better in Google Trends than several other popular Netflix titles.

While the spring quarter tends to be a relatively slow one for Netflix, investors are encouraged by the fact that the company released new seasons of hit shows Orange is the New Black and House of Cards during the period. Anmuth thinks this was “perhaps Netflix’s strongest content quarter ever.”

The question, however, is how many subscribers actually sign up for Netflix just to watch new seasons of shows that have been out for five years and are arguably past their prime. Enthusiasm for Orange is the New Black and House of Cards has cooled, Jefferies analyst John Janedis recently noted.

Nonetheless, Wall Street has high hopes for Netflix, projecting that the company added 631,000 net subscribers in the U.S. during the quarter, according to FactSet. The company only added 162,000 a year ago.

On the international side, investors are encouraged by growth prospects in Europe and Latin America. Wall Street estimates that the company added 2.6 million net members overseas, up 70% from a year prior. In general, Netflix shares tend to rise and fall based on the company’s ability to add new subscribers.

Overall, analysts are calling for $2.7 billion in revenue and 16 cents a share in earnings.

Big Picture: Investors are betting that Netflix’s second-quarter content slate drove a heavy volume of subscriber additions.

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To: Glenn Petersen who wrote (1563)7/15/2017 9:58:41 AM
From: Glenn Petersen
   of 1744
Netflix’s DIY Strategy Should Pay Off Overseas

The company is increasingly self-producing shows and movies, which will allow it to offer more titles in more markets.

By Emily Bary
July 13, 2017 12:24 p.m. ET

Netflix is spending a lot of money on content, and investors aren’t quite sure whether that’s a liability or a competitive advantage. On one hand, Netflix is burning cash quickly, but on the other, the company is trying to make a big push into new markets and needs more titles to succeed there.

On Thursday, Morgan Stanley Benjamin Swinburne raised his price target on Netflix shares to $185, based partly on his belief that Netflix is making smart choices about programming rights, which could yield strong results internationally. His price target implies a 16% premium to today’s level.

Swinburne is encouraged by Netflix’s decision to self-produce more content, since the company owns the global rights to such programming. Morgan Stanley has found that Netflix achieves greater subscriber penetration in markets where it makes more titles available.

“As Netflix shifts to more globally owned originals or global licenses, the title count will grow, which history tells us should help ramp penetration,” he wrote in a note to clients. Still, the company will have to make sure that new titles remain high quality.

A look at the revenue that traditional media companies are able to generate based on the value of their net content assets suggests there’s room for Netflix to improve. Netflix brings in a dollar of revenue per dollar of net content assets, Swinburne says, while legacy companies are able to bring in twice that -- or more. (Net content assets is a measurement of the value of Netflix’s content as determined by accountants.)

He notes that Netflix may have trouble reaching that ratio, given that traditional media giants rely heavily on the most profitable regions and are able to sell ads. “Nevertheless, the implications would suggest a dramatic opportunity to drive earnings,” Swinburne writes.

Big Picture: Netflix is making smart programming choices that could pay off internationally, an analyst argues.

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To: Glenn Petersen who wrote (1564)7/15/2017 11:36:12 AM
From: Sr K
   of 1744
Netflix added "Lion" in the past few days.

It didn't win a major award, but it was in contention.

Amazon has "Moonlight", the Oscars Best Picture.

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To: Sr K who wrote (1565)7/15/2017 11:56:18 AM
From: Glenn Petersen
   of 1744
Both good movies.

I'm surprised that Amazon has not made greater inroads into Netflix's market share given the amount of money they have poured into their offerings. Obviously, it is part of Jeff Bezos' long game.

I am also surprised that no one (Apple, Disney?) has made an offer to buy Netflix.

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To: Glenn Petersen who wrote (1566)7/15/2017 8:01:18 PM
From: Sr K
1 Recommendation   of 1744
Reed Hastings said in answering a question in a recent quarterly Interview that to assess the opportunity, it's not what they are doing, it's what others quicker to International have reached, so he compares what Google YouTube and Facebook have reached (900 million MAU to a billion, and growing). He thinks the opportunity for Netflix is the same, to 80% International (and 20% U.S).

Simple math on the expected growth in Q2 in that 7/14 Barron's article, U.S.: International rounds to 20:80.

631,000 19.53%
2,600,000 80.47%


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To: Glenn Petersen who wrote (1566)7/15/2017 8:12:12 PM
From: Sr K
   of 1744
Amazon is getting a percentage of Netflix revenue, possibly as high as Apple gets (30%). They've blended the references to Netflix on the Amazon Fire TV Stick, and Netflix allows its App on the Fire Phone, just as HBO and Showtime and CBS and others have.

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To: Sr K who wrote (1568)7/16/2017 12:48:26 AM
From: d[-_-]b
   of 1744
Amazon is getting a percentage of Netflix revenue

Not to mention the fact Netflix runs entirely on Amazon AWS hosted servers.

Always wondered why they try to compete against their biggest customer.

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From: Glenn Petersen7/17/2017 4:23:26 PM
3 Recommendations   of 1744
Netflix adds 5.2 million users, crushing estimates — stock soars nearly 9%

  • Analysts polled by Thomson Reuters expect Netflix to post 16 cents a share in adjusted earnings and $2.76 billion in revenue.
  • The company expected streaming net additions of 3.2 million.
  • There is mounting competition in the digital streaming space, as Amazon ramps up content spending, and Apple dips its toe into original content.

Anita Balakrishnan | @MsABalakrishnan
4 Mins

Netflix reported second-quarter earnings on Monday that fell just shy of analyst estimates, and revenue that exceeded expectations as user growth exploded.

The entertainment technology company added 5.2 million, blowing away Wall Street's estimates of 3.23 million during a historically weak quarter amid the return of marquee content like "Orange is the New Black."

Mark Neuling | CNBC
Reed Hastings, CEO of Netflix.

Results vs. expectations
  • EPS: 15 cents per share vs. 16 cents per share, adjusted, expected by a Thomson Reuters consensus estimate
  • Revenue: $2.79 billion vs. $2.76 billion expected by a Thomson Reuters consensus estimate
  • User growth (net adds): 5.2 million (1.07 million domestic, 4.14 million international) vs. 3.23 million total streaming (631,000 domestic, 2.59 million international) expected by a FactSet estimate.
That's compared to earnings of 9 cents per share on revenue of $2.11 billion in the year-ago period.\
  • Q3 guidance, EPS: 32 cents vs. 23 cents per share expected by a Thomson Reuters consensus estimate
  • Q3 guidance, revenue: $2.97 billion vs. $2.87 billion expected by a Thomson Reuters consensus estimate
  • Q3 guidance, net adds: 4.4 million vs. 3.925 million total streaming expected by Street Account
User growth key amid mounting competition

Since Netflix's last earnings report, new seasons of popular series "House of Cards" and "Orange is the New Black" hit the small screen. "13 Reasons Why" also garnered buzz after it was unveiled on the last day of the first quarter.

Netflix's financial report comes on the heels of the 2017 Emmy nominations, which recognized Netflix series such as "Master of None," "Unbreakable Kimmy Schmidt" and "Stranger Things" in the company's 91 nominations.

But the nominations also highlighted the mounting competition in the digital streaming space, as Amazon ramps up content spending, and Apple dips its toe into original content with shows like "Planet of the Apps." CEO Reed Hastings has told CNBC that Amazon is an " awfully scary" foe.

Last quarter, Netflix said it would spend over $1 billion in 2017 on marketing costs alone, projecting that the company would have negative free cash flow for "many years" as it invests in original content, including an estimated $2 billion in negative free cash flow this year.

Netflix has shuffled some top executives in recent months, adding chief product officer Greg Peters and feature film boss Scott Stuber. The entertainment technology company also continued its international expansion, where it gets the bulk of its user growth, by adding support for more languages.

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From: JakeStraw7/18/2017 9:18:14 AM
   of 1744
Here's how Netflix can rally another 70% to $300, according to Bank of America

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