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| Jeff Macke and Dr. Jon Najarian on Breakout |
Jeff Macke Has Dr. Jon Najarian on Breakout
Jeff Macke of Breakout (Yahoo! Finance) says: “It’s very
hard to make original programming.”
He’s speaking in particular about the upcoming challenge
that Netflix is facing. They have some success with the Kevin Spacey original
series House of Cards. Macke points out that HBO is a subsidiary of Time Warner
for that very reason.
Jeff Macke makes the point that Netflix is trying to make it
on their own without a deal with Viacom to stream their content. Guest analyst
Jon Najarian on Breakout thinks that it is tougher on Netflix to produce original
programming than it would be on Amazon, because Amazon is more diversified.
Dr. Jon Najarian says that it is harder on Netflix stock
prices because they deal exclusively in content, but Amazon is more
diversified, and gets paid up-front with Amazon Prime. Netflix does not get
paid up front for their content. Netflix stock prices have gone above $200 at
the end of May 2013, while Amazon’s stock prices are above $260 per share.
Dr. Jon Najarian thinks that Reed Hastings did very well
with the Kevin Spacey original series House of Cards. However the jury is still
out on Arrested Development.
Dr. Jon Najarian thinks that since the Netflix stock price is above $200, there may be a
stock split coming in the near future.
Amazon has Announced to launch 5 New Original Shows
Is Amazon making a smart move by producing 5 original series?
Good question.
Dr. Jon Najarian thinks they are trying to “confuse the
investor,” but thinks that because Amazon is so diversified, it is less
volatile (than Netflix) in the event that the new original programming is a
flop.
Essentially, the stock price of Netflix is more likely to be directly affected, than it is for Amazon.
He thinks that the original content plan for Amazon “may or
may not work.”
Dr. Jon Najarian points out that Amazon doesn’t want to be
compared to Disney and Time Warner, because it affects the stock prices.
Amazon plans to release a full season of the comedy shows
Betas and Alpha House, along with kids shows Annebots, Creative Galaxy, and
Tumbleleaf, exclusively on Amazon Prime.
Amazon is confident in launching these shows because the
success of their pilots looked promising.
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