The content market is a very big deal, especially these days. With streaming services on the rise and physical media dwindling, the notion of how writers and actors get paid is changing. Streaming giant Netflix (NASDAQ:NFLX) is looking to shake up this market yet again, and investors aren’t sure this is such a good idea, sending Netflix shares down fractionally in Friday afternoon’s trading.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
It all started with a new roster move that isn’t Dan Lin. Rather, it’s a fellow named Jun Oh, previously with Skydance Media. And if you’ve been following the Paramount (NASDAQ:PARA) situation for the last few months now, you know who Skydance Media is. Oh served as business affairs chief over at Skydance, and now, will be “head of business affairs, film” at Netflix.
And Oh is looking to change the way talent gets paid at Netflix. Netflix realized it won the streaming wars and is looking to take back its pound of flesh. It no longer needs to pay big money to get big names, as it, too, is now a big name and has the market power to flex.
If It Ain’t Broke…
The problem here becomes a matter of “how.” Several metrics have already been floated, but many have issues of their own. Bonuses for top performers sounds like a good plan, but reports note that 95% of Netflix’s content is actually disqualified from that payout already. Who will sell to Netflix when there’s a 95% chance of minimal pay?
And with Netflix awash in talent—it’s got four hundred stand-up comics under its banner already—it can ill afford to lose them to companies that might be willing to pay extra just to show up Netflix. With signs that consumers are reconsidering their streaming loadout, perhaps now is not the time to skimp on content to save a few bucks.
What Is the Stock Price Forecast for Netflix in 2024?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 23 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 76.64% rally in its share price over the past year, the average NFLX price target of $657.61 per share implies 8.01% upside potential.
