Former NBC Cable President Tom Rogers is dialing again his bullishness on Netflix.
The media trailblazer, who was a self-proclaimed “raging bull” on Netflix, advised CNBC’s “Quick Cash” this week he is beginning to fear — and listed competitors with free content material on YouTube as a headwind.
“[Netflix] nonetheless [has] extra hit reveals than all the opposite streaming providers mixed, however if you have a look at the expansion of their sub[scriber] base and have a look at the quantity of complete engagement time from all viewers they get, the quantity of viewing per viewer has gone down some,” mentioned Rogers, who’s now govt chairman of AI firm Claigrid.
Netflix noticed the most important month-to-month viewership enhance versus its friends in June, based on Nielsen. Nonetheless, YouTube had 13% of complete month-to-month TV viewership whereas Netflix had 8%.
Rogers’ newest take comes after Netflix delivered a constructive quarterly report on July 17.
“There was nothing flawed with its earnings in any respect,” mentioned Rogers, who can be a CNBC contributor. “However engagement is what drives every thing right here. The quantity of viewing it will get, it drives worth will increase, which drive programming finances, which drives extra nice programming.”
Netflix beat second quarter high and backside line estimates and raised its full-year steering. However since its earnings report, the streamer’s inventory is down about 6% and is now off nearly 11% since hitting a report excessive on June 30.
Rogers additionally predicts synthetic intelligence will likely be a “double-edged sword” for Netflix within the near-term. On the one hand, he mentioned it’ll help the streamer’s focused promoting and assist lower programming prices. Nevertheless it additionally permits impartial content material creators a leg up — which advantages YouTube.
“The road between skilled and novice content material goes to get an increasing number of blurry as AI instruments within the arms of amateurs enable them to supply issues that look extremely skilled,” he mentioned. “I feel AI within the arms of the inventive neighborhood of YouTube might create a degree {of professional} programming for YouTube which drives its viewership even additional.”
YouTube’s guardian firm, Alphabet, is up 2% to date this 12 months.
But, Rogers nonetheless considers Netflix sustaining his standing as probably the most useful media firm on the earth. Nonetheless, he mentioned a lag is “one thing to look at for certain.”
Netflix spokesperson Emily Goldstein deferred remark to the corporate’s second-quarter earnings name.
