Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Selling Shows To Netflix, Inc. (NFLX): Biggest Blunder By Studio Owners Says Todd Juenger

Television has had a pretty disappointing summer with broadcast ratings dropping by around 4% and cable ratings were down by around 7%. Many think that the lost shares by Television has gone to Netflix, Inc. (NASDAQ:NFLX). A ‘Deadline’ article speculates that Big media companies selling contents to Netflix has backfired. Another ‘Re/Code’ article says that the reduced Television shares has gone to Netflix.


Bernstein Research’s Todd Juenger’s has made a report which suggest that the unprecedented drop in C3 ratings for advertisement supported television was due to the big media companies’ decision to sell their contents to Netflix, Inc. (NASDAQ:NFLX). Juenger noted that the overall television viewing drop of 4% from last year equals 13 minutes per day drop and Netflix viewing has increased by 12 minutes per day during the same period.

So Is Netflix, Inc. (NASDAQ:NFLX) a substitute to Traditional TV or a supplement to it?

“We don’t think those viewers are coming back. The trend is more likely to accelerate than decline, […] stop licensing to SVOD, or face years of declining audiences,” Juenger was quoted as saying.

He feels that if these companies stop licensing to SVOD that would cause a material drop in immediate earnings. He thinks that they will play a short-term game increase the amount of content they license to SVOD, to make up for the lost advertising revenue, which will only make the problem worse.

Some claim that the recent drop in TV ratings was due to miss in accounting for people who see TV in their smartphones and tablets. But Juenger thinks that many people don’t prefer watching TV on small screen when they are at home and have big screens. He added that DVR’s and VOD’s are also not contributing for decline in TV viewing. So only possible reason might be the Netflix, Inc. (NASDAQ:NFLX) and other streaming services.

A week ago NBC Universal CEO, Steve Burke acknowledged that the technology is impacting its ratings in recent days.

“Competition combined with new technology is making it harder and harder to deliver the kind of ratings that we have all been used to,” Burke was quoted as saying.

Juenger feels that companies like Disney, Fox, Time warner and Discovery might not get impacted a lot since they don’t depend a lot on advertising revenues. But the companies like AMC networks, Viacom, CBS and Scripps Networks which depend a lot on advertising revenues might have a lot of issues going ahead.

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!