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, informed 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 exhibits 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 government chairman of AI firm Claigrid.
Netflix noticed the biggest month-to-month viewership enhance versus its friends in June, in accordance with Nielsen. Nonetheless, YouTube had 13% of complete month-to-month TV viewership whereas Netflix had 8%.
Rogers’ newest take comes after Netflix delivered a optimistic quarterly report on July 17.
“There was nothing incorrect with its earnings in any respect,” mentioned Rogers, who can also be a CNBC contributor. “However engagement is what drives every thing right here. The quantity of viewing it will get, it drives value will increase, which drive programming funds, which drives extra nice programming.”
Netflix beat second quarter prime 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 file 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’s going to assist the streamer’s focused promoting and assist reduce programming prices. However it additionally permits impartial content material creators a leg up — which advantages YouTube.
“The road between skilled and novice content material goes to get increasingly blurry as AI instruments within the arms of amateurs enable them to provide issues that look extremely skilled,” he mentioned. “I believe AI within the arms of the artistic group of YouTube might create a stage {of professional} programming for YouTube which drives its viewership even additional.”
YouTube’s mother or father firm, Alphabet, is up 2% up to now this 12 months.
But, Rogers nonetheless considers Netflix sustaining his standing as essentially the most beneficial media firm on the earth. Nonetheless, he mentioned a lag is “one thing to look at for positive.”
Netflix spokesperson Emily Goldstein deferred remark to the corporate’s second-quarter earnings name.
