Key Points:

• Only Amazon.com Inc. (NASDAQ: AMZN) comes close as a competitor to the streaming king Netflix Inc. (NASDAQ: NFLX).
• Netflix is going beyond movies and shows and adding live sports including WWE, NFL events, and maybe UFC in order to attract more viewers.
• Rivals such Warner Bros. Discovery Inc. (NASDAQ: WBD), Paramount Global (NASDAQ: PARA), or Apple Inc. (NASDAQ: AAPL) find it tough to catch up given about 500 million combined Netflix and Amazon rule the streaming market.
• Also: Are you ahead or behind for retirement? Click here to see. (Sponsor)

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Transcript:

[00:00:00] Doug: So if you look at, Netflix,

[00:00:03] Lee: I do almost daily.

[00:00:05] Doug: So do we all, but so, they, they just crushed earnings and no one else is in that stratosphere and time in terms of subscribers, except Amazon and Amazon’s close ish, but they’re not there. But the thing I like about Netflix is that while some of the other places are being a little bit cautious about paying for programming, Netflix is like.

[00:00:30] Doug: You know what? We’re not just going to do movies. We’re going to do like live sports and stuff. So what’s going on there?

[00:00:37] Lee: Well, it’s interesting. they have the WWE raw. They have the rights to that. They have NFL rights. Now they’ll be broadcasting the Christmas day games and now they’re going, for the, UFC.

[00:00:54] Lee: Let me check this out to make sure I’ve got this correct. They are going for the UFC rights, which will be huge. Just absolutely huge. ’cause UFC is probably neck and neck with wrestling for being the biggest eyeball grabber from young men.

[00:01:12] Doug: Yeah, I think it’s probably, it may even be ahead of it because the thing is that you can actually get killed in UFCC.

[00:01:19] Doug: You actually can. Yeah. And wrestling, it’s, you can get hurt, it’s fake. But in UFC. They can actually, the guy can actually get killed. So I think it’s like NASCAR. People watch it because they hope somebody will get in a wrecking.

[00:01:32] Lee: Yeah. He’s a genius. and, like you said, everybody else is somewhat reluctant to put all their chips on the table.

[00:01:40] Lee: Not that guy,

[00:01:42] Doug: It is an example of something I love in businesses. And I love it when public companies do this, when you’re in the lead, you exploit it. Here the companies that get into the lead and then sort of decide that they’ll coast because they Think they’ll be in the lead forever that to me that’s like general motors and ford Ah, you know there was a time I think you remember this when general motors and ford had almost 80 market share they dominated In the united states netflix is saying We’re going to take this money and we’re just going to, we’re just going to throw it on the fire.

[00:02:15] Doug: It’s just going to, we’re going to make so much money by getting more and more programming. I love that in the company.

[00:02:21] Lee: Well, and think, of what they had to do that should have tapped the brakes on growth, but it didn’t, putting in a, pay. Level, or if, if you’re willing to watch commercials, it’s less, but I mean, a lot of times that would maybe be a knockout punch, but not for these guys.

[00:02:40] Lee: No. And you know what? There’s probably people now that Netflix has been around as long as it has. There’s probably, younger people, the Gen Z’s that don’t even realize that they used to ship out CDs.

[00:02:52] Doug: Oh, they don’t know. Nobody that age. They probably don’t. And that was that long ago. But there’s a cautionary tale here for people like, Warner Brothers Discovery and Paramount and Apple Plus.

[00:03:08] Doug: You’re not going to catch these guys. Amazon has so much leverage with making this part of Prime in some cases. Prime shoppers buy a lot more at Amazon than non Prime shoppers. So they’ll keep shoveling money into Amazon. Prime Video, Netflix, they’re just, they’re too hot to catch between the two of them.

[00:03:30] Doug: They’ve got close to 500 million subscribers when they’re put together. And the rest of the people are just, even Disney is like, it’s an also ran.

[00:03:41] Lee: Yeah. and when you, if you would have considered that as little as five years ago, people would have said, there’s no way there’s just absolutely no way.

[00:03:49] Lee: And what will be interesting in the future, because as we all know, The property to own the NFL, plain and simple. I mean, UFC is great and WWE is great, but in terms of revenue dollars for advertising, it’s the NFL. And it’d be interesting to see if this, cause this Christmas, I think will be their first NFL game.

[00:04:11] Lee: It’ll be interesting to see if a, that gets even more subscribers. Cause they’re like, Hey, I want to see the football game on, Christmas. Even if I just got to buy this dumb thing for that, it could.

[00:04:24] Doug: Well, the thing about this that I find fascinating is if you go back In history, there was a period when the traditional networks owned the NFL. Fox decided to come in and Rupert Murdoch said, he’s going to own a piece of it.

[00:04:38] Lee: CBS and NBC had it because, CBS controlled the, the national football, the NFC conference. And remember the old AFC was on NBC. So when they were brought into the NFL in the late sixties, NBC kept that property, but

[00:04:57] Doug: No. Yeah. it’s amazing. But Amazon will also invest because they, they’re making so much money off everything else, but Netflix is not going to be caught.

[00:05:10] Doug: I think to me, that’s the message of what we’ve got to say here.

[00:05:13] Lee: They’re absolutely the 800 pound gorilla. And again, now with the kind of resources and cashflow, they’ll be doing more and more of their own programming. And if they bring the UFC in, and I think you’re right, I think from 18 to 36 42, that demographic, they’re gonna lock down that demo.

[00:05:32] Doug: Yeah. Anyway, I love this stock. I love Netflix.

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