Netflix (NFLX) is taking a deeper step into the world of live television. In a newly announced partnership, the U.S. streaming giant has teamed up with French TV network group TF1 to bring live channels and on-demand content to Netflix users in France. These channels will be available as part of current subscriptions, although it’s unclear if any additional fees will be involved. Netflix co-CEO Greg Peters described the deal as a first-of-its-kind partnership that combines top entertainment with a strong discovery experience.
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Interestingly, this move shows that Netflix is becoming more confident in its ability to stream live content. Indeed, the company has already had success with events like WWE, NFL Christmas games, the Tom Brady roast, and the Tyson vs. Paul fight. By adding live TV, Netflix is positioning itself to benefit from the ongoing industry shift away from traditional broadcast TV and toward streaming services. In an earlier interview with Bloomberg, Peters noted that the entire media landscape is undergoing a transition toward on-demand content, which will include a shakeout period as the industry adapts.
The timing of the announcement comes at the same time as a major milestone in television viewing habits. According to a Nielsen report released Tuesday, streaming has officially overtaken both broadcast and cable combined in the U.S. for the first time. In May, streaming accounted for 44.8% of total TV viewing, compared to 24.1% for cable and 20.1% for broadcast. As more viewers shift to streaming, Netflix’s expansion into live TV could help it capture even more market share from traditional networks.
Is NFLX Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NFLX stock based on 29 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NFLX price target of $1,239.76 per share implies that shares are fairly valued.
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