Netflix Becoming More Than A House Of Cards With New In-House Content

Although the show’s cancellation caught viewers off guard, Netflix, Inc. (NASDAQ: NFLX) itself is not a "House of Cards."

If there is one thing there is no shortage of at Netflix, it's content. The company has an “ample queue” of new programs, according to Buckingham Research analyst Matthew Harrigan, after spending $7 billion-$8 billion for 2018 content.

Buckingham Research maintains a Buy rating on Netflix with a $235 price target despite the abrupt cancelling announcement of the popular original series "House of Cards" after troubling news of Kevin Spacey’s egregious past behavior broke. The final season is expected to debut in mid-2018, and might receive a viewership boost due to its now controversial elements.

“With another House Of Cards season we do not expect any fallout for Netflix’s consumer appeal, even with Nielsen now poised to measure streaming activity,” said Harrigan (see his track record here).

Netflix has successfully diversified its content; the company is not heavily dependent on a few successful series to drive its original content momentum. The streaming service is now emphasizing in-house owned shows that capture full studio economics.

“Recent initiatives include the MillarWorld comic acquisition and poaching of Shonda Rhimes from Disney, complementing the appeal of ongoing franchises like the Duffer Brothers’ Stranger Things and The Crown,” said Harrigan.

The analyst is affirmed in the company’s content strategy and predicts Netflix original content could increase from 25 percent to up to 60 percent over time.

Related Link: 'Stranger Things' Not The Only Netflix Catalyst In Q4

________
Image Credit: Spartan7W (Own work) [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0) or Public domain], via Wikimedia Commons