Tom Rogers, the former president of NBC Cable, is reducing his optimism about Netflix.
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The media pioneer, who referred to himself as a “raging bull” on Netflix, stated on CNBC’s “Fast Money” this week that he is beginning to worry and cited competition from YouTube’s free programming as a challenge.
“[Netflix] still [has] more hit shows than all the other streaming services combined, but when you look at the growth of their sub[scriber] base and look at the amount of total engagement time from all viewers they get, the amount of viewing per viewer has gone down some,” Rogers, who is currently the executive chairman of artificial intelligence firm Claigrid, Inc.
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According to Nielsen, Netflix experienced the biggest monthly viewership growth in June when compared to its competitors. However, Netflix had 8% of all TV watchers each month, while YouTube had 13%.
Rogers’ most recent opinion follows Netflix’s July 17 favorable quarterly report.
Rogers, who also contributes to CNBC, stated, “There was nothing wrong with its earnings at all,” However, involvement is the main factor at play here. Price hikes are influenced by the volume of viewing, which in turn influences the programming budget and, ultimately, more excellent programming.
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Netflix increased its full-year guidance and exceeded second-quarter top- and bottom-line projections. The streamer’s stock, meanwhile, has dropped almost 6% since its earnings release and is already down nearly 11% from its June 30 record high.
According to Rogers, artificial intelligence will provide Netflix with a “double-edged sword” in the near future. On the one hand, he claimed it would assist reduce programming expenses and support the streamer’s tailored advertising. However, it also gives independent content producers an advantage, which is good for YouTube.
“The line between professional and amateur content is going to get more and more blurry as AI tools in the hands of amateurs allow them to produce things that look incredibly professional,” he stated. “I think AI in the hands of the creative community of YouTube could create a level of professional programming for YouTube which drives its viewership even further.”
Alphabet, the parent firm of YouTube, has seen a 2% increase so far this year.
Rogers, however, believes Netflix will continue to hold its position as the world’s most valuable media firm. But according to him, a lag is “something to watch for sure.”
Speaking on the company’s second-quarter results call, Netflix spokesperson Emily Goldstein refrained from commenting.
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