Former NBC Cable President Tom Rogers is dialing again his bullishness on Netflix.
The media trailblazer, who was a self-proclaimed “raging bull” on Netflix, instructed CNBC’s “Quick Cash” this week he is beginning to fear — and listed competitors with free content material on YouTube as a headwind.
“[Netflix] nonetheless [has] extra hit reveals than all the opposite streaming companies mixed, however while you have a look at the expansion of their sub[scriber] base and have a look at the quantity of complete engagement time from all viewers they get, the quantity of viewing per viewer has gone down some,” stated Rogers, who’s now govt chairman of AI firm Claigrid.
Netflix noticed the biggest month-to-month viewership enhance versus its friends in June, in response to Nielsen. Nonetheless, YouTube had 13% of complete month-to-month TV viewership whereas Netflix had 8%.
Rogers’ newest take comes after Netflix delivered a optimistic quarterly report on July 17.
“There was nothing incorrect with its earnings in any respect,” stated Rogers, who can be a CNBC contributor. “However engagement is what drives all the pieces right here. The quantity of viewing it will get, it drives worth will increase, which drive programming finances, which drives extra nice programming.”
Netflix beat second quarter high and backside line estimates and raised its full-year steerage. However since its earnings report, the streamer’s inventory is down about 6% and is now off nearly 11% since hitting a file excessive on June 30.
Rogers additionally predicts synthetic intelligence will probably be a “double-edged sword” for Netflix within the near-term. On the one hand, he stated it would assist the streamer’s focused promoting and assist reduce programming prices. But it surely additionally permits impartial content material creators a leg up — which advantages YouTube.
“The road between skilled and novice content material goes to get an increasing number of blurry as AI instruments within the arms of amateurs enable them to provide issues that look extremely skilled,” he stated. “I believe AI within the arms of the artistic group of YouTube may create a stage {of professional} programming for YouTube which drives its viewership even additional.”
YouTube’s dad or mum firm, Alphabet, is up 2% up to now this yr.
But, Rogers nonetheless considers Netflix sustaining his standing as essentially the most worthwhile media firm on this planet. Nonetheless, he stated a lag is “one thing to observe for certain.”
Netflix spokesperson Emily Goldstein deferred remark to the corporate’s second-quarter earnings name.
