Netflix Offers Breaking Bad 5 Final Episodes - Analyst Blog


Netflix Inc. ( NFLX ) recently started streaming the final episodes of AMC's Breaking Bad 5 . The season finale received great response primarily due to the buzz created by the availability of all the past seasons on Netflix, prior to the start of the final installment.

Netflix has also secured rights to stream new episodes of a spin-off of the Breaking Bad series called Better Call Saul , which will debut on AMC in Nov 2014. The new series is expected to premiere on Netflix by late 2014, reflecting the company's continuing focus on improving customer engagement.

This has been the primary reason behind its success in the recent times. Netflix added 11.07 million paid streaming subscribers over the last 12 months. Total streaming subscriber base increased 11.08 million year over year to 44.35 million, primarily driven by expanding content portfolio that includes original and popular productions such as Arrested Development and House of Cards .  

Over the last one year, Netflix has entered into partnerships with major film studios and production houses, which include names such as DreamWorks Animation, The Wachowskis (creators of The Matrix trilogy), J. Michael Straczynski (Babylon 5), Gaumont International, Sony Pictures, The Weinstein Company (TWC) and Walt Disney ( DIS ).

These deals have helped Netflix to not only increase its content portfolio, but also to move into new segments such as comedy, political thrillers, autobiographies and horror.

To further improve subscriber engagement, Netflix recently announced a multi-year partnership with Comcast Corp ( CMCSA ) . According to Bloomberg, Netflix will pay an undisclosed fee to directly access Comcast's broadband network.

The partnership will improve streaming quality for subscribers on Comcast network, which have been falling for sometime due to excessive traffic jam. Netflix is also expected to partner other major carriers such as AT&T ( T ) and Verizon, which will further improve net speeds providing superior streaming quality to its subscribers.

Although this additional cost will increase operating expenses, we believe the availability of popular shows, such as Breaking Bad , along with high quality streaming will rapidly drive Netflix's subscriber base and revenues in 2014.

Moreover, this will improve Netflix's competitive position against the likes of Amazon Prime and HBO, going forward. Nevertheless, rising content costs remains a significant headwind.

Currently, Netflix sports a Zacks Rank #2 (Buy).

COMCAST CORP A (CMCSA): Free Stock Analysis Report

DISNEY WALT (DIS): Free Stock Analysis Report

NETFLIX INC (NFLX): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: TWC , CMCSA , DIS , NFLX , T

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