Netflix, HBO Now And More: What Wedbush Analysts Are Watching

In a report published Tuesday, Wedbush analyst Michael Pachter offered his outlook in the Film and Video On Demand space.

The Big Screen

According to Pachter, second quarter and full year 2015 industry box office revenue will be higher by roughly 7 percent. The second quarter will compare favorably against the same quarter a year ago led by the new "Avengers" title that is expected to generate over $550 million at the domestic box office.

The third quarter is setting up favorably with a "very easy" year-over-year comparison. The fourth quarter will also compare favorably, led by the new "Star Wars" film and the conclusion of the "Hunger Games" franchise.

Related Link: What 5 Top Netflix Analysts Are Saying Before Earnings

IMAX/Disney Deal

Pachter stated that IMAX Corporation (NYSE: IMAX)'s new release slate deal with Walt Disney Co (NYSE: DIS) is "not surprising" and the deal is "reassuring" given a "robust" lineup of films. The deal includes two "Star Wars" films and five Marvel titles and two more Pixar titles in addition to four of Disney's own titles.

The analyst noted that the deal solidifies IMAX as the theater destination of choice for Disney's "blockbuster" titles.

HBO Now Debut

HBO Now strategically debuted on April 12 for $14.99 a month, coinciding with the season five debut of "Game of Thrones." HBO Now represents an opportunity for some viewers to "cut the cord" and could threaten Streaming Video on Demand competitors given its appeal to millennials with quality content and an expanded partnership with Vice.

Related Link: Why HBO Now Is A Bad Idea

Amazon Vs. Netflix Battle Heating Up

Netflix, Inc. (NASDAQ: NFLX) was the first mover in subscription-based online streaming and has thus far delivered "compelling" original content but is seeing increased competition from Amazon.com, Inc. (NASDAQ: AMZN). The analyst noted that Amazon has "clearly gained ground" and has seen its original "Transparent" win a Golden Globe.

Moreover, Pachter suggested that Amazon will outbid its competitors to win the library of "Seinfeld" episodes that could result in taking market share, especially from Netflix.