Craig-Hallum says Netflix move creates monetization opportunities for Magnite

Craig-Hallum analyst Jason Kreyer notes that Netflix (NFLX) announced its first entry into live broadcast channels with the announced partnership with TF1, the leading live TV broadcaster in France. The partnership will see subscribers in France gain access to live and on-demand content directly on Netflix. Notably, Magnite (MGNI) struck an agreement with TF1 just nine months ago to bolster programmatic demand. Thus, the firm sees this relationship representing a ramp in its monetization potential with Netflix by bringing an influx of live content to the Netflix ecosystem, where Magnite remains the exclusive SSP. Craig-Hallum expects a seamless transition to monetizing this inventory on Netflix at up to 90% programmatic execution. The firm’s checks from Cannes in France have noted a material ramp in interest and active discussions between these broadcasters and both publishers like Netflix, and tech partners like Magnite. Craig-Hallum sees this trend adding yet another layer of tailwinds to the Magnite story. The firm has a Buy rating and a price target of $14 on Magnite’s shares.