It’s no secret that video streamer Netflix (NASDAQ:NFLX) built its fortunes on the back of physical media. Those little red envelopes in the mail were the highlight of many people’s day. But Netflix is eager to get away from physical media altogether, and that’s not exactly sitting well with investors. Shares were down nearly 2% in Monday afternoon’s trading.
Word came from Mike Flanagan, who was recently hired to take over the “Exorcist” series and hopefully get it back on track. Reports suggest that wasn’t going so well after “The Exorcist: Believer” went south. But Flanagan noted that he approached Netflix with plans for physical media releases of some of his earlier material, like “Hush” and “Before I Wake.”
Netflix, Flanagan noted, was “actively hostile” toward the idea of putting any of Flanagan’s work on stamped plastic. Flanagan, in turn, noted that this was a “…very dangerous point of view,” particularly in terms of “…the very concept of film preservation.”
Netflix Has Interesting Planned Releases
Netflix may be eager to get out from the shadow of the physical disk, but what it’s got planned for release might well help. Starting July 1, Netflix will provide a new life to “Star Trek: Prodigy,” the “Star Trek” cartoon geared toward younger Trek fans, by bringing out its second season. It’s also set to bring “Scavengers Reign” to the UK—one of a handful of titles with a Rotten Tomatoes score of 100%—as well as DC’s “The Flash” live-action movie, which didn’t fare so well in theaters. Nevertheless, it may do better on a home release, like other overlooked or underperforming titles have done so in the past.
Is Netflix a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 23 Buys, 12 Holds, and one Sell. After a 56.21% rally in its share price over the past year, the average NFLX price target of $659.45 per share implies 4.77% upside potential.
