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, informed 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 whenever you take a look at the expansion of their sub[scriber] base and take 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 most important month-to-month viewership improve versus its friends in June, based on Nielsen. Nonetheless, YouTube accounted for 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 improper with its earnings in any respect,” stated Rogers, who can be a CNBC contributor. “However engagement is what drives every little thing right here. The quantity of viewing it will get, it drives value will increase, which drive programming finances, which drives extra nice programming.”
Netflix beat second-quarter top- and bottom-line estimates and raised its full-year steering. Nonetheless, since its earnings report, the streamer’s inventory has declined by about 6% and is now down nearly 11% since reaching 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 should help the streamer’s focused promoting and assist lower programming prices. But it surely additionally permits unbiased content material creators a leg up, which advantages YouTube.
“The road between skilled and newbie 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 feel AI within the arms of the artistic neighborhood of YouTube may create a stage {of professional} programming for YouTube which drives its viewership even additional.”
YouTube’s mother or father firm, Alphabet, is up 2% year-to-date.
But, Rogers nonetheless sees Netflix sustaining its standing as probably the most useful media firm on the earth. Nonetheless, he stated a lag is “one thing to look at for certain.”
Netflix spokesperson Emily Goldstein deferred remark to the corporate’s second-quarter earnings name.