Netflix (NASDAQ: NFLX) transformed content consumption from DVD rentals to streaming, setting the industry standard. Competitors like The Walt Disney Company, Warner Bros. Discovery, and Amazon struggled to match its innovation.
But in a crowded streaming market, relying solely on original content wasn’t enough. Sensing the changing landscape, Netflix is shifting its focus, revamping from just a streaming service to an entertainment conglomerate.
Netflix’s Leap into Live Entertainment
One criticism of streaming is viewers binge-watch a series and then search for more content. Netflix identified this gap and started producing live events. Their recent comedy special, The Roast of Tom Brady, attracted 2 million viewers on opening night and now stands as Netflix’s top show.
The company plans to livestream events like a Jake Paul boxing match and NFL’s Christmas day games in the following years as a strategy to draw new viewers and keep them engaged on the platform.
Image source: Getty Images.
Building Immersive Experiences for Fans
Netflix is also venturing into immersive experiences with Netflix Houses, where fans can relive sets from popular series. Drawing inspiration from Disney’s theme parks, Netflix aims to deepen the bond with its audience without massive capital investment.
Assessing Netflix’s Stock Potential
With a Price-to-Sales (P/S) ratio of 7.8, Netflix stands out as the priciest stock among media and entertainment peers, reflecting its 80% surge in the past year. Contrasting Disney’s struggle in streaming and recent investor challenges, Netflix’s market dominance seems unwavering.
NFLX PS Ratio data by YCharts