By Hernan Lopez.
Companies mentioned: Amazon, Apple TV, Disney, Fox, Fubo TV, hulu, Instagram, Meta, Netflix, Paramount Skydance, Spotify, TikTok, Warner Bros Discovery, and YouTube.
Questions answered: Which big company announced an AI tool to generate video creative at CES? What are your expectations for Netflix’s financial and engagement results? What themes that came out of CES will turn into questions during earnings season? Has the streaming industry over-indexed on recurring revenue?
Netflix kicks off the Streaming & Social Earnings Season next week, having guided to $45.1B revenue for the year (up 17% y/y) and $13B+ in Operating Income (possibly as high as 30% growth). With no meaningful forecast changes from analysts, all eyes will be on:
- Does Paramount’s proxy fight change what Netflix needs to do in order to close the WB deal, and what would be the implications of losing it?
- How fast has engagement grown?
Netflix will also release “What We Watched: 2H25” (We shared our full deep dive of 2023-1H25 with Owl & Co clients. Selected slides are available here).
Last July, Netflix blamed flattish engagement in 1H25 on an unusually back-half-loaded content slate. In October, Greg Peters said...