The company will lose the rights to air its most popular series in 2021…
Providing great content is everything for Netflix so the company was under pressure when it came out that Netflix will lose one of its most popular series. “The Office” will be removed by NBC in 2021.
Netflix offered to pay NBC $90 million per year to continue airing the show but NBC declined. “The Office” is one of the most-watched shows on Netflix so it will be a major blow for the company to lose the series.
Can Netflix Remain Competitive?
The company’s shares have gained a lot of ground since the beginning of the year but have remained mostly stagnant over the past six months. According to Stifel analyst Scott Devitt, this is largely due to the uncertainty surrounding the company’s content production.
The company continues to invest a lot of money into producing original content. Original series like “Stranger Things” has been a hit for Netflix over the past several years.
But data from PricewaterhouseCoopers (PwC) found that licensed shows are actually the most-watched content on Netflix. This means that losing shows like “The Office” could cause Netflix to take a hit with its subscribers.
And there’s been recent speculation that Netflix could lose the rights to air “Friends,” which is believed to be the second most-watched show on Netflix.
And the company has largely maxed out its U.S. subscriber base so if it’s going to continue to grow, it will need to find a way to expand its international market. But Netflix has struggled to effectively monetize its international viewers.
Analysts See Good Things Ahead for Netflix
Netflix’s shares are up more than 40% year to date but still lag 5% behind where they were a year earlier. And the company is under increased scrutiny as it faces more competition in the streaming market. Netflix will soon have to deal with rivals like Disney, Comcast, and Apple.
However, Wall Street has remained mostly positive when it comes to Netflix. Out of the 40 analysts covering the company, 38 give Netflix’s shares either a buy or hold rating.
And the stock is up nearly 475% from just five years earlier. If Netflix can continue to grow its subscriber base and maintain its content production, this should propel the stock over the long haul.
