With the entertainment industry in upheaval these days, it is little surprise that Netflix (NFLX) is revamping some of its operations as well. In fact, it plans to pitch a series of industry figures on “transparency” at an event this Tuesday, noted a Deadline report. Investors were not exactly pleased, as shares were down fractionally in the closing minutes of Wednesday’s trading session.
With streaming on the rise, and physical media and linear broadcast seemingly on the way out, the issue of how streamers get paid has become increasingly important. With that in mind, Netflix is hosting an event, which includes representatives from several major talent agencies, including Gersh, Paradigm and Verve, among others.
The event is likely to focus on how Netflix plans to build deals going forward. Since the event is titled Netflix Explained, that makes such coverage all the more likely. The topic of streamer pay is not specifically on the agenda, but reports note it will be brought up. It sort of has to be; without clarity on this front, Netflix runs the risk of losing access to content, and without content, its viability as a platform is immediately questioned.
European Television Gold Mine
However, there seems to be one source of content for Netflix that has proven a real winner over the years: European television. For instance, Scandinavian television is proving a real hit on the platform. Titles like Lilyhammer and Billionaire Island are attracting viewers. Netflix piled in on investments in a time when many were pulling back, and the result has been several surprising hits.
Meanwhile, in the United Kingdom, Netflix seems to be picking winners and losers, with a Financial Times report noting that “…smaller producers could be left behind.” Baby Reindeer proved a winner for Netflix, as did The Gentlemen and Fool Me Once, titles all produced in England that were each in the top five global shows.
Is NFLX Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 25 Buy, 12 Hold and one Sell recommendations made in the past three months, as indicated by the graphic below. After a 89.8% rally in its share price over the past year, the average NFLX price target of $25.47 per share implies 7.97% upside potential.
