What Netflix, Inc. (NASDAQ:NFLX) and other companies like it have done in this world where content is still king is to revitalize and broaden the content distribution industry, Paul Sweeney said in a discussion on Bloomberg Surveillance.
The comment about Netflix, Inc. (NASDAQ:NFLX) came from the Bloomberg Intelligence analyst as he and BTG Research Analyst Richard Greenfield, Morgan Stanley Chief U.S. Equity Strategist Adam Parler and Bloomberg’s Tom Keene were discussing content, television and the media landscape for 2015.
“[Five years from now] I think content is still going to be king. I think what’s happening here is we’ve had a tremendous explosion in terms of distribution. It’s not just the cable system. It’s not just the over-the-air broadcast system, it’s now internet delivery of content. Think Netflix,” he said.
What media executives at content production houses need to ensure in the coming years, he said, is that their content will be available in services such as Netflix, Inc. (NASDAQ:NFLX)’s as more and more people migrate to viewing content via the web.
Aside from Netflix, Inc. (NASDAQ:NFLX), Richard Greenfield commented about how television status as the focal point of content distribution in the media landscape is evaporating. People, especially those who are younger, are getting their content elsewhere, he said, and it’s jeopardizing the traditional advertising business.
Greenfield also noted that the one thing which should be getting attention in the media space is virtual reality. He noted how the Oculus Rift will be in stores late this year which will gradually eat up time spent by people consuming media.
Adam Parker added in the discussion that industry observers are worried about advertising for traditional media companies such as those television because the technology is changing at such a rapid pace which makes it hard to evaluate future cash flow for these firms.
Philippe Laffont’s Coatue Management owned about 2.08 million Netflix, Inc. (NASDAQ:NFLX) shares by the end of the third quarter of the year.