Tom Rogers, the former NBC Cable President, has moderated his optimistic stance on Netflix, citing competition from YouTube as a growing concern.
Netflix Faces New Challenges
Rogers, who previously described himself as a ‘raging bull’ on Netflix, expressed concerns on CNBC’s ‘Fast Money’ about the competition Netflix faces from free content on YouTube. Despite Netflix having more hit shows than other streaming services combined, Rogers noted a decline in viewing time per subscriber.
Impact of Competition
In June, Netflix saw the largest monthly viewership increase among its peers, according to Nielsen. However, YouTube accounted for 13% of total monthly TV viewership, compared to Netflix’s 8%.
Expert Opinions
Rogers commented on Netflix’s recent positive quarterly report, stating that while earnings were strong, engagement is crucial for driving price increases and programming budgets. Since the earnings report, Netflix’s stock has declined by about 6%.
Future Outlook
Rogers predicts that artificial intelligence will be a ‘double-edged sword’ for Netflix, aiding targeted advertising but also empowering independent creators on platforms like YouTube.
Despite these challenges, Rogers believes Netflix will maintain its status as a leading media company, though he advises caution.
