A key reason why I wrote yesterday that a Disney (DIS) sale would not be announced until the end of 2024 or in 2025 is that Disney has to be thinking about the Biden Administration's FTC head Lina Khan blocking a potential deal, whether it be for pieces of Disney such as ABC, or for … Continue reading A Disney Sale: The FTC and Potential Acquirers.
Amazon, Apple, Disney, Google, Meta, Microsoft and Netflix have an advantage over other content companies given their size. By size I am primarily referring to market cap and size of balance sheet. Apple (AAPL, $2.94 Trillion market cap) and Microsoft (MSFT, $2.43 Trillion market cap) are in a league of their own with their nose … Continue reading Apple’s VisionPro Provides A Defensible Edge In The Content Space
YouTube ought to carry a standalone Enterprise Value of approximately $300 billion. YouTube's Ad business: YouTube's advertising business is a $30 billion Revenue business (we annualized YouTube's June quarter Ad Revenue). YouTube's Subscription business: YouTube's subscription services (YouTube TV, YouTube Premium and YouTube music; I subscribe to all three) generate approximately $17 billion in annual … Continue reading YouTube Is A Bigger Business Than Netflix. Why Not Spin Out YouTube?
One would expect Amazon's AWS business to slow when the company reports earnings this Thursday August 3rd. Our position on the Big 3 (AWS, Azure, GCP), is unchanged since January (read that article HERE). AWS revenue growth will slow as a result of fewer startup creations and headcount reductions over the past year combined with … Continue reading Amazon Reports Thursday. Here Are Our Thoughts On AWS.
Netflix (ticker: NFLX), needs a growth engine. The table below is a bit of an eye chart, but what it tells you is that in Q2 2023, only Netflix's LatAm region had solid Average Revenue per Membership growth at 8% adjusted for currency. The U.S. and Canada had only 1% growth, EMEA (1)% and APAC … Continue reading Netflix: Where’s The Growth?
AI is nothing new, yet we are only scratching the surface. I believe that every Technology company is incorporating broadly-defined "AI" into their products and services offerings at this juncture. "AI" at its core is based upon statistical models that underpin various advanced automation processes such as machine learning, deep learning, neural networks, natural language … Continue reading AI Is Nothing New, Yet We Are Only Scratching The Surface
Disney (DIS) needs additional hit content for its Disney+ streaming platform. The streaming game is a scale game. Production houses that own their own streaming platform (Netflix, Disney, Comcast, Warner Bros. Discovery), need to ensure they have sufficient "hit" content to drive profitable streaming operations. Ideally those content producers want to achieve streaming profitability primarily … Continue reading Disney Should Acquire Warner Bros. Discovery
YouTube is larger than Netflix (NFLX). We estimate that YouTube generates annual revenue of approximately $43.3 billion (versus fiscal year 2022 Revenue of $31.6 billion for Netflix). 2022 YouTube Ad Revenue (as reported): $29.2 billion. YouTube TV revenue: $3.5 billion. (We assumed 4 million YouTube TV subscribers at $72.99 per month. The $72.99 price is … Continue reading How Big Is YouTube? It’s Larger Than Netflix.
The most interesting thing about Netflix (ticker: NFLX, due to report April 18th at 4pm ET), is its Co-CEO model. Will it work long-term? Time will tell. Co-CEOs usually do not work. Today Ted Sarandos and Greg Peters share the CEO title at Netflix. The way I view NFLX's leadership model is that Sarandos is … Continue reading Will Netflix’s Co-CEO Model Work?