Video streaming company, Netflix NFLX recently acquired the rights to air Ricky Gervais’ popular movie Special Correspondents. Starring Eric Bana, the satirical comedy is set for a worldwide release in 2016.
Netflix remains focused on developing/acquiring new content exclusive for its broadcasting.Its attempts to tap new and upcoming opportunities in the entertainment world and collaborating with big names such as Ricky Gervais make it more attractive for viewers.
Netflix’s partnerships with major film studios and production houses like The Wachowskis (creators of The Matrix trilogy), J. Michael Straczynski (Babylon 5), Gaumont International, Walt Disney DIS and CBS Corp. CBS are also expected to expand its content library in 2015 and beyond.
Apart from Ricky Gervais, Netflix signed deals with actor-producer, Adam Sandler for exclusive rights to his upcoming four movies including the much-anticipated Ridiculous 6. In addition, the company signed up with the Weinstein Company to co-produce the Crouching Tiger Hidden Dragon sequel— The Green Legend. The film will hit IMAX cinemas globally and via Netflix on Aug 28.
While Netflix is expanding its library (and market share) with original productions to deal with growing competition from streaming service providers like Amazon AMZN, Hulu and HBO (Read more: Will Netflix be Hit by HBO-Apple Video Streaming Deal?), the resultant escalation in content costs remains a concern.
Nonetheless, an engaging content library that offers an eclectic mix of original and third-party shows is necessary to drive growth at Netflix. We believe that the fast-growing subscriber base will drive the top line this year. Additionally, price increases (for both domestic and international new users) will help Netflix to offset higher expenses in the near term.
Currently, Netflix has a Zacks Rank #3 (Hold).
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