Greenfield: Netflix Could Be Considered a #2 Network

BTIG’s Richard Greenfield wrote a blog post Wednesday stating that Netflix (NASDAQ:NFLX) would be the 15th most watched “network” in U.S. homes and might be as high as 2nd in homes that subscribe to the service. Greenfield’s assertion is based on the fact that subscribers watched more than 2 billion hours of shows and movies on Netflix in the four quarter according to information released by the company.

The Hollywood Reporter quoted Greenfield, who wrote, “Netflix must be eating into traditional TV viewing time. Netflix streaming usage is exploding and is far, far bigger than traditional media executives give it credit for.” Greenfield compares networks by breaking the data down into hours watched per month. Greenfield says that users watched 667 million hours of Netflix in October while hours watched per month once you get below the top 15 networks are below 500 million. “Netflix had more hours of viewing in October than FX (NASDAQ:NWSA), HGTV and History and had more than twice the viewer hours of CNN (NYSE:TWX), Discovery (NASDAQ:DISCA), MSNBC (NASDAQ:CMCSA) and BET,” Greenfield wrote.

What makes this data more astonishing according to Greenfield is that Netflix is only in 21 million homes while pay-TV subscribers total approximately 100 million. By cutting the hours watched per month on traditional networks by 21%, Greenfield finds that Netflix would be the number two network in homes that subscribe to Netflix.

He did, however, find inside pay-TV subscribing homes, Netflix only accounted for 2.4% of viewing time. “While Netflix may be very popular in Netflix homes, it is rather meaningless when put into the context of total television viewing.”

Here’s how Netflix and some of the network stocks are reacting to the analysis and news:

Netflix, Inc. (NASDAQ:NFLX): NFLX shares recently traded at $80.45,. They have traded in a 52-week range of $62.37 to $304.79. Volume today was 87,705 shares versus a 3-month average volume of 8,178,290 shares. The company’s trailing P/E is 18.28, while trailing earnings are $4.40 per share.

News Corp. (NASDAQ:NWSA): NWSA shares recently traded at $18.22,. They have traded in a 52-week range of $13.38 to $18.50. Volume today was 0 shares versus a 3-month average volume of 19,691,600 shares. The company’s trailing P/E is 17.88, while trailing earnings are $1.02 per share.

Time Warner Inc. (NYSE:TWX): TWX shares recently traded at $36.49,. They have traded in a 52-week range of $27.62 to $38.62. Volume today was 0 shares versus a 3-month average volume of 7,172,470 shares. The company’s trailing P/E is 13.85, while trailing earnings are $2.63 per share.

Discovery Communications, Inc. (NASDAQ:DISCA): DISCA shares recently traded at $40.98,. They have traded in a 52-week range of $34.75 to $45.81. Volume today was 0 shares versus a 3-month average volume of 1,540,820 shares. The company’s trailing P/E is 17.10, while trailing earnings are $2.40 per share.

Comcast Corporation (NASDAQ:CMCSA): CMCSA shares recently traded at $24.73,. They have traded in a 52-week range of $19.19 to $27.16. Volume today was 0 shares versus a 3-month average volume of 17,698,600 shares. The company’s trailing P/E is 17.79, while trailing earnings are $1.39 per share.

CBS Corporation (NYSE:CBS): CBS shares recently traded at $27.90,. They have traded in a 52-week range of $17.99 to $29.68. Volume today was 0 shares versus a 3-month average volume of 7,883,310 shares. The company’s trailing P/E is 15.87, while trailing earnings are $1.76 per share.

Walt Disney Co. (NYSE:DIS): DIS shares recently traded at $38.85,. They have traded in a 52-week range of $28.19 to $44.34. Volume today was 1,529 shares versus a 3-month average volume of 11,401,600 shares. The company’s trailing P/E is 15.42, while trailing earnings are $2.52 per share.

To contact the reporter on this story: Ashley Cloninger at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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