Direct TV Vs Netflix

Hello Saul,
Was curious on what you thoughts of the possible Direct TV deal and being worth 49 Billion. I don’t remember you speaking about Netflix but if Direct Tv is worth 49 billion do you see a value proposition in owning Netflix which already has more subscribers than Direct Tv and is expanding worldwide aggressively?

Gerald.

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Hi Gerald,

When coming up with a comp value between NFLX and DTV, its not only subs but how much top & bottom line those subs generate.

I looked at it a while ago:

http://beta.fool.com/grahamsway/2013/01/28/whats-netflix-wor…

but haven’t really checked it out since. With all the action I probably should take a look again.

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Thank you for the response Grahamsway, with Netflix raising prices and growing globally, I see there revenue per subscriber going north in a hurry. Now if only they can wrestle away the Nfl Sunday ticket away from Direct Tv, wouldn’t that be something?

Gerald

<Now if only they can wrestle away the Nfl Sunday ticket away from Direct Tv, wouldn’t that be something?>

That would be huge for Netflix and you bring up an interesting dynamic I haven’t thought of.

Maybe NFLX should try to get into sporting events. Starting small with exclusives in MMA or the Kentuckey Derby or Extreme Sports might be worth it.

If NFLX has its movies, plus some original programming, plus some exclusive sports (NFL Sunday as you noted would be the ultimate), the company would be well on the way to being the first Internet “full TV” equivalent network.

I was around when Ted Turner started in cable and that was basically his formula. Old TV shows, then original, mostly news, content, and then sports.

If NFLX can emulate Turner, there does seem to be a lot of potential.

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