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Watch Charles Sizemore chat with CNBC’s Oriel Morrison about the Japanese markets and the potential for a full-blown capital markets meltdown.
I recently gave my thoughts on Netflix (Nasdaq:$NFLX) and its business model to the E-Commerce Times’ Erika Morphy:
Netflix all but invented the content-over-Internet model, which is quickly reshaping the way consumers view media, said Covestor Model Manager Charles Lewis Sizemore.
“Netflix and its competitors are the biggest shake-up to media since paid cable TV,” he told the E-Commerce Times.
“I don’t know anyone who buys HBO to watch movies; these days they buy it for its original programming — like the popular Game of Thrones. Netflix is trying to follow that model, and they are wise to. Otherwise, the company is a commodity seller of old content with nothing to distinguish it from its competitors.”
Not that it is clear sailing for Netflix going forward. Not that long ago, it was bleeding subscribers.
Competition from Amazon (Nasdaq:$AMZN), Apple (Nasdaq:$AAPL), Walmart’s (NYSE:$WMT) Vudu and other streaming services is a significant concern, Sizemore said. “Netflix needs to keep differentiating itself lest it get lost in this crowd.”
Certainly, these competing companies are not going to give up their own subscribers without a fight, Scherer added. “All of these providers are fighting for the same subscribers, as well as for the same content.”
Content costs remain a concern for Netflix, noted Covestor’s Sizemore.
“They’ve been getting their material from the studios at very attractive prices, but as Netflix grows and comes to threaten the media status quo, the content providers are rethinking this. Higher costs for content, coupled with competition from competing services, mean that margins will likely shrink.”
To read the full article, see Netflix Plays Its Q1 Cards Right
Watch me give my thoughts on investing in the rise of the Echo Boomer generation on Fox Business:
In the second half of the interview, Charles Sizemore discusses investing in the frontier markets of Africa, what the passing of Hugo Chavez means for Latin America, the bubble in farmland prices and more on Mike Robertson’s Straight Talk Money:
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Charles Sizemore is the Chief Investment Officer of Sizemore Capital Management, a registered investment advisor based in Dallas serving individual families and institutions. (Read More)
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