Report
EUR 9117.00 For Business Accounts Only

Netflix (NFLX, Neutral, raising target to $625 from $590) Higher Estimates/Target as Dust Settles on a Flurry of Advertising Changes

We have refreshed our advertising model and adjusted ad-supported members/users, CPMs, and fill rate in the UCAN segment, resulting in higher estimates and a higher target for NFLX. In the note, we review the short- and long-term implications of the current aggressive CTV pricing environment, how NFLX’s recent changes (NFL games, more ad tech partners, management changes, etc.) may impact its competitive positioning, and review our revised ad model in detail.
Underlying
Netflix Inc.

Netflix is engaged in subscription streaming entertainment service including TV series, documentaries and feature films across a variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, without commercials. Additionally, several members in the United States subscribe to the company's DVD-by-mail service. The company improves its streaming content with a focus on a programming mix of content. The company's members can download a selection of titles for offline viewing. The company operates its business as a global operating segment.

Provider
New Street Research
New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

  • Pan European Telecom Services and Cable
  • US Telecoms, Cable, Satellite and Towers
  • Global Emerging Market Telecoms
  • Japan Telecoms
  • Asian Internet
  • Pan European Healthcare
  • Global healthcare thematic research

We provide debt research on:

  • Pan European Telecom Services and Cable


Analysts
Dan Salmon

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