Netflix, Inc. (NASDAQ:NFLX) is continuing its assault on the industry dominated by entrenched studios, Jeremy Rosenberg, head of digital at Allison & Partners, said in a report for CNBC’s The Tech Bet.
The Netflix, Inc. (NASDAQ:NFLX) observation was made by the analyst as the entertainment content production and distribution company recently signed a deal with Hollywood A-lister Adam Sandler.
“As Netflix has evolved their content distribution and the way that they are creating content, they’re providing new value to their subscribers which is going to continue to increase those numbers and keep more subscribers happier and loyal for longer periods of time. That’s going to help the stock and that’s going to help investors along the way as well,” Rosenberg said.
Netflix, Inc. (NASDAQ:NFLX)’s new deal with Sandler, which will see the celebrity produce four feature films exclusively for the company, comes as Netflix continues its push to create more original content that they have the sole rights to for streaming to their customers.
Furthermore, the new deal comes after the company recently snagged a deal to stream the film “Crouching Tiger, Hidden Dragon: The Green Legend” to subscribers at no added cost on the same day the film debuts on IMAX Corporation (USA) (NYSE:IMAX) theaters.Netflix, Inc. (NASDAQ:NFLX), according to Rosenberg, has evolved from a small startup which challenged the video delivery industry into a more modern way of developing content and delivering this content to their subscribers. As such, the company is continuing to push against studios which dominate the traditional entertainment content production industry.
The new Sandler deal is a step towards a more strengthened position in the premium content space, the analyst said.
Carl Icahn’s Icahn Capital Lp owned about 1.76 million shares of Netflix, Inc. (NASDAQ:NFLX) by June 30 of this year.