How Much Is Netflix Content Worth?

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by @todotvnews the 14/07/2017
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Morgan Stanley analysts reveal Netflix's net value of content surpasses the combined content assets for Viacom, Discovery, AMC Networks and Scripps Networks. Yet, the revenue Netflix generates trails traditional TV platforms.

This Thursday, Morgan Stanley analyst Benjamin Swinburne said there's a positive correlation between the number of titles offered by Netflix, and the growth and penetration of its subscribers in any given region.
 
According to the company's analysis, the net value of content currently on Netflix rises to an impressive US$ 11 billion, twice as much as it was two years ago.
 
From that total, close to 15% (US$ 1.7 billion) corresponds to original series and movies by the platform.
 
Analysts estimate that with this number, Netflix's net value of content surpasses the combined content assets for Viacom (US$ 4.9 billion), Discovery Communications (US$ 2.4 billion), AMC Networks (US$ 1.5 billion) and Scripps Networks Interactive (US$ 1.1 billion). 
 
However, the revenue Netflix generates on that base of content is well below TV and film conglomerates. Morgan Stanley explains these generate between US$ 2 and US$ 4 per dollar invested in content, while Netflix's ratio is still one to one.
 
Thus, Netflix's challenge is to be able to monetize its investment in content with the same success as its traditional counterparts.
 
"There's no guarantee Netflix can ever monetize its content with as high a rate of return as traditional TV networks have historically," Swinburne said. "Nevertheless, the implications would suggest a dramatic opportunity to drive earnings."
 
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