Netflix will release its Q2 financial report on Thursday, and most Wall Street analysts believe the company has essentially won the streaming war.
Netflix's stock price has risen about 33% so far this year. This is better than the performance of many competitors of traditional and emerging media. Some analysts predict that Netflix's future growth rate will slow down, but they say the company still has huge room to gain bigger economic benefits.
Betting on live streaming?
However, as Netflix's leadership advantage expands, some analysts say the company's next important competitive area is live events, which is currently dominated by large technology companies and traditional television.
eMarketer analyst Paul Verna said in an email that although Netflix is the market leader and the largest innovator in the entertainment streaming field, it is still chasing competitors such as Amazon, YouTube, Walt Disney and NBCUniversal in the live events and sports fields.
The company is also further expanding its live streaming track and plans to broadcast American professional football league (NFL) games, as well as boxing matches of Jake Paul and Mike Tyson. JPMorgan analysts said programs such as "Baby Reindeer" and the third season of "Bridgerton" are worth watching in the second quarter.
Stop disclosing the number of memberships
Netflix plans to stop disclosing the number of memberships from next year, which is the indicator that investors paid close attention to a few years ago. Not disclosing user numbers anymore makes some investors uneasy. Wedbush analysts said in a research report last Friday that they believe this is part of a transition to slower growth and higher profits. However, they said this evolution is "far from complete."
As Netflix no longer discloses user numbers, its actual financial situation, as well as advertising revenue and content expenditure, will become more important indicators.