Analysts Say Gaming and Shopping Won't Save Netflix

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Analysts Say Gaming and Shopping Won't Save Netflix

Despite intensifying competition in the streaming wars, Bank of America analysts said on Tuesday they see Netflix remaining content king and predict shares of the Los Gatos company will jump to $680 per share by this time next year.

Netflix was trading around $541 midday Tuesday.

The streaming wars are in the midst of a heated round of consolidation. Amazon shelled out for MGM in late May, following a mega merger between WarnerMedia, which runs HBO Max, and Discovery. Both deals remain subject to regulatory approval.

To keep up, BofA analysts said in a research report they suspect Netflix is eying franchises and other intellectual property it can spin into new films and shows to bolster its selection. That would be the opposite approach that its competitor Amazon took when it spent $8.45 billion to gobble up MGM Studios for the iconic Hollywood studio's library content.

Netflix has been moving deeper into ecommerce, aiming to gain an edge over other streamers, but analysts are unimpressed.

This spring, Netflix opened a new online store, which sells gear like apparel and action figures tied to some of its content. And the streaming giant is reportedly looking to hire gaming executives, as reported by The Information. But the analysts said neither move is likely to give them a leg up.

Movies and Series

Netflix will be welcoming several new films each year from its recently announced multiyear partnership with Steven Spielberg's production studio, Amblin Partners. The analysts cheered the deal, calling it "instrumental" in bolstering Netflix's movie pipeline. They also called out the second seasons of "Lupin" (debuted in June), "Bridgerton" and "The Witcher" (both debuting later this year) as Netflix's most important original content right now.

Down the road, the analysts are watching what may come of the UK government's plans to regulate U.S. streaming services. It is unclear what changes will result, but the analysts highlighted the U.K. Culture Secretary's fears that some viewers may consider hit series "The Crown" as nonfiction. The government's plans are set to be announced later this week.

Subscribe to our newsletter to catch every headline.


March Capital Raises $650 Million Fund to Invest in AI Startups

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to and find him on Twitter @Samsonamore.

March Capital Raises $650 Million Fund to Invest in AI Startups
March Capital founder Jamie Montgomery. Illustration by Dilara Mundy.

Santa Monica-based venture outfit March Capital announced Feb. 3 that it raised its largest fund to date, a $650 million investment vehicle that will be used to back up to 15 startups focused on delivering new uses of artificial intelligence.

Read moreShow less

The Three Best Ways to Work With Your Startup Board

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

The Three Best Ways to Work With Your Startup Board

When launching and running a startup, your board of directors is one of your most valuable assets. If you already understand why you need a board and how to structure your board, it may be tempting to think you can cross that item off the list. But building a board is just the beginning. Now you’ve got to get down to business—together.

Read moreShow less

This Week in ‘Raises’: Saviynt Lands $205M, Pagos Secures $34M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

This Week in ‘Raises’: Saviynt Lands $205M, Pagos Secures $34M
This Week in ‘Raises’:

While it was a slow week of funding in Los Angeles, security vendor Saviynt managed to score $205 million that will be used to meet the company’s growing demand for its converged identity platform and accelerate innovation.

Read moreShow less