Netflix Reportedly Casts Jennifer Aniston in Murder Mystery
Netflix NFLX has been one of the top-performing stocks to-date in 2018 driven by its robust and ever expanding content portfolio. The company’s strategy of producing quality original content and strong programming slate will continue to help it in attracting and retaining subscriber base.
Netflix’s massive spending on content can primarily be attributed to high production values. Notably, the solid budget also attracts well-known Hollywood stars, which definitely make the shows more attractive.
Hollywood stars like Will Smith (Bright), Brad Pitt (War Machine), Jake Gyllenhaal (Okja), Henry Cavill & Nicholas Hoult (Sand Castle), Angelina Jolie (First They Killed My Father), Steven Spielberg, Francis Ford Coppola, Guillermo Del Toro and Meryl Streep (Five Came Back) have already worked with Netflix, either in the capacity of an actor or a director.
Jennifer Aniston is the latest addition to this bandwagon. Per Variety, Aniston will star opposite Adam Sandler in Netflix’s new comedy show Murder Mystery. In 2011, they were paired opposite in movie Just Go With It, which was a runaway hit, earning $103 million in the United States and $215 million worldwide.
Notably, Aniston is also working in an unnamed show along with Reese Witherspoon for Apple AAPL.
Netflix, Inc. Price and Consensus
Netflix, Inc. Price and Consensus | Netflix, Inc. Quote
Netflix Dominates on Portfolio Strength
The streaming market is expected to heat-up with upcoming services from the likes of Apple and Walt Disney DIS.
Apple’s aggressive bidding for original content has been a headwind for Netflix in recent times. The iPhone-maker is reportedly spending more than its stipulated budget of $1 billion.
Further, the recent acquisition of several major 21st Century Fox assets is a significant addition to Disney’s portfolio. Additionally, the company’s distribution agreement with Netflix also ends in the coming year, which means new movies will only be available on Disney’s streaming service in the United States.
However, Netflix continues to dominate the streaming market based on its ever-expanding content portfolio, well-supported by the whopping budget. The company is expected to spend a whopping $7.5–$8 billion in 2018 and it is anticipated to increase further to $12.2 billion in 2020.
Notably, Netflix intends to produce/acquire 80 films throughout the year. The company plans to release 30 international original series this year, including programs from India, Korea and Japan.
Netflix recently expanded its push in the global video streaming market with its first Philippine series to be released on Apr 9. The company collaborated with Filipino media company, TV5 Network to stream the 12-episode mini-series Amo, which is based on the controversial drug war of Filipino president Rodrigo Duterte, per media reports.
Although enormous spending on marketing (almost $2 billion in 2018 compared with $1.3 billion in 2017) can dent Netflix’s profitability, we believe that the company’s expanding content portfolio will rapidly drive subscriber growth in the long haul.
Zacks Rank & Stock to Consider
Currently, Netflix carries a Zacks Rank #3 (Hold).
Discovery Communications DISCA with Zacks Rank #1 (Strong Buy) is a stock worth considering in the same sector. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Discovery is currently pegged at 8.80%.
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