Now Streaming: Netflix weighs expanding NFL package

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

Claim 55% Off TipRanks

NETFLIX/NFL: Netflix (NFLX) is considering expanding its current two-game NFL package to four games, The Wall Street Journal’s Jessica Toonkel and Joe Flint reported earlier this week, citing people familiar with the matter. It is interested in adding the National Football League’s new Thanksgiving Eve game and an international game, likely in the season’s opening week, those people said. Netflix is in the final year of its three-year Christmas Day game package, for which it paid about $75M a game.

NETFLIX INITIATION: Citizens initiated coverage of Netflix this week with a Market Perform rating and no price target. The firm says the media and entertainment sector “is evolving alongside shifting consumer preferences.” As AI advances, the migration toward streaming will accelerate, reflecting demand for personalized, on-demand viewing, the analyst tells investors in a research note. Citizens names Sphere Entertainment its top pick in the group. The firm sees limited near-term catalysts to drive Netflix’s results and awaits a better entry point.

FUBO INITIATION: Citizens also initiated coverage of FuboTV (FUBO) with an Outperform rating and $13 price target. The firm says the media and entertainment sector “is evolving alongside shifting consumer preferences.” As AI advances, the migration toward streaming will accelerate, reflecting demand for personalized, on-demand viewing, the analyst tells investors in a research note. Citizens names Sphere Entertainment its top pick in the group.

DISNEY/EPIC: Disney (DIS) executives are interested in acquiring “Fortnite” maker Epic Games at some point, but are waiting for the right moment, tech reporter Alex Heath reported via an appearance on podcast The Town. “I know for a fact there are senior executives in Disney who want them to buy Epic and are just waiting for that moment,” Heath said, “and then there are others who think it’s a bad idea. If Epic ever sold, if it ever decided to call it quits on being an independent company, Disney would be the most natural home for it for a lot of reasons.” Disney is already among investors in Epic Games, along with Tencent (TCEHY), KKR (KKR), and Sony (SONY).

DISNEY UPGRADE: On Thursday, Raymond James upgraded Disney to Outperform from Market Perform with a $115 price target. The current macro backdrop and Disney’s international visitation headwinds provide an opportunity to invest at a “very attractive valuation,” the analyst tells investors in a research note. The firm believes Disney shares are “historically cheap even in some of the more draconian scenarios” it stress tested. Raymond James points out the company’s streaming business represents the majority of its operating income growth. It sees Disney’s risk/reward as attractive at current levels.

ROKU/HOWDY: Earlier this week, Roku (ROKU) announced that Howdy is launching as a mobile app in the U.S. The app is available now on the iOS App Store and Google Play, offering a seamless viewing experience with on-the-go access to Howdy’s curated library of rom-coms, medical dramas, ’90s comedy, feel-good classics, and more. In April, Howdy will feature audience favorites like “Edge of Tomorrow,” “Tyler Perry’s Madea’s Big Happy Family,” and “When Harry Met Sally.”

STOCK PLAYS: Other publicly traded companies in the space include Comcast (CMCSA), Paramount Skydance (PSKY), Apple (AAPL), Amazon (AMZN), AMC Networks (AMCX), and Fox (FOXA).