Michael Nathanson: “Largest traditional media companies started to show their cards” NFLX

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“We would argue that Netflix has been prepping for these days since 2016 and has been moving upstream to sign content creators away from the established TV studios,” Michael Nathanson, founding partner of MoffettNathanson LLC, wrote in a note.

“2018 will go down as the year in which some of the largest traditional media companies started to show their cards vis-a-vis their over-the-top distribution strategies,” he said.

For Netflix, more streaming options increases the risk of larger media players withdrawing attractive content in an effort to entice viewers. While management was able to ink a deal recently to keep “Friends” available for subscribers, the non-exclusive broadcasting rights reportedly may have come with a near to $100 million price tag.

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