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, advised 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 exhibits than all the opposite streaming companies mixed, however while 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,” mentioned 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 line with Nielsen. Nevertheless, YouTube accounted for 13% of complete month-to-month TV viewership, whereas Netflix had 8%.
Rogers’ newest take comes after Netflix delivered a constructive quarterly report on July 17.
“There was nothing improper with its earnings in any respect,” mentioned Rogers, who can also be a CNBC contributor. “However engagement is what drives every thing right here. The quantity of viewing it will get, it drives value will increase, which drive programming price range, which drives extra nice programming.”
Netflix beat second-quarter top- and bottom-line estimates and raised its full-year steering. Nevertheless, since its earnings report, the streamer’s inventory has declined by about 6% and is now down virtually 11% since reaching a file excessive on June 30.
Rogers additionally predicts synthetic intelligence can be a “double-edged sword” for Netflix within the near-term. On the one hand, he mentioned it can help the streamer’s focused promoting and assist minimize programming prices. Nevertheless it additionally permits impartial content material creators a leg up, which advantages YouTube.
“The road between skilled and beginner content material goes to get increasingly more blurry as AI instruments within the palms of amateurs permit them to provide issues that look extremely skilled,” he mentioned. “I believe AI within the palms of the artistic group of YouTube might create a degree {of professional} programming for YouTube which drives its viewership even additional.”
YouTube’s mum or dad firm, Alphabet, is up 2% year-to-date.
But, Rogers nonetheless sees Netflix sustaining its standing as probably the most helpful media firm on the planet. Nevertheless, he mentioned a lag is “one thing to observe for positive.”
Netflix spokesperson Emily Goldstein deferred remark to the corporate’s second-quarter earnings name.
