Netflix Declared Victor in ‘Streaming Wars’

Netflix is poised to strengthen its position as the leading streaming service due to changes in the last 18 months that include evolving industry dynamics, talent strikes and an investor focus on profitability. “These changes (e.g., reducing content spend/output, increasing third-party licensing) have been a tacit acknowledgement that not all media companies will be able to achieve Netflix’s global reach and scale in streaming,” BofA Research Analyst Jessica Reif Ehrlich says in a note. “It is becoming increasingly clear that Netflix has won the ‘streaming wars.'” Since Netflix can now buy more from outside providers it won’t have to finance as much new production and can instead spend on established content, Reif Ehrlich says. BofA raises its price target to $585 from $525.

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