Credit: Shutterstock photoNetflix 's NFLX recent comedy hit, The Kominsky Method , is all geared up for a second season. The upcoming season will consist of eight episodes, similar to the first, and production is expected to begin by the end of this month in Los Angeles.
The renewal looks like a perfect opportunity for the company to cash in on the success of the first series and add to its subscriber base. Additionally, many users expressed their interest for a second season on Twitter, which reflects popularity of the show.
The Kominsky Method is Netflix's first comedy series to win an award for best comedy or musical at the recent Golden Globes.
Netflix's focus on quality originals - both movies and TV shows - is the primary reason behind the company's growing award slate. Moreover, content strength and quality is driving user base. Notably, Netflix added 29 million subscribers in 2018 compared with 22 million in 2017.
Netflix, Inc. Revenue (TTM)
Netflix, Inc. Revenue (TTM) | Netflix, Inc. Quote
Netflix Climbs the Content Ladder
Netflix is aggressively investing in original content, especially when the company's originals account for the "vast majority" of the content watched on its platform, per management.
On its last earnings call , the company noted that content spend will further shoot up this year. Notably, Netflix is looking to reduce its dependence on licensed programming and include more original content.
Additionally, even with the recent subscription price hike, about 71% of the users noted that they will continue with Netflix subscription, per Streaming Observer. Moreover, only 3% confirmed to canceling plans.
This strengthens the belief that Netflix is still a dominant player, primarily due to its early focus on original content. Other players like Disney DIS , Apple AAPL and AT&T's Warner Bros. are investing heavily now, ahead of the launch of their respective streaming services in 2019.
Further, Tom Rogers, a former NBC Executive, is very optimist about Netflix and thinks that nobody can catch up with the streaming giant. This comes at a time when Comcast CMCSA owned NBCUniversal announced the launch of a free streaming service in early 2020.
Competition Intensifying
For companies like Disney and Warner Bros., which rule the box office, pouring investments in content may not be too hard. Additionally, Disney's worldwide popular franchises like Marvel Studios and Star Wars among others are likely to attract users to its content offerings.
Moreover, CBS recently announced that it will soon pull its films from the theaters and exclusively showcase them on its streaming service due to the easy and quick reach provided by streaming platforms. This is likely to increase competition in the streaming market.
Nevertheless, Netflix's content strength and expanding portfolio provides a competitive edge. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Walt Disney Company (DIS): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Apple Inc. (AAPL): Get Free Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
