Rich Greenfield of BTIG explains why Netflix is his favorite content provider and is a great stock to own. Following is a transcript of the video.
Sara Silverstein: Final question. What is your favorite content provider? Well, I know what it is as an investment so it’s Twitter, right?
Richard Greenfield: No, I think Netflix is it.
Silverstein: Yeah, and as a consumer.
Greenfield: If you’re talking about content creation, I think Netflix is a great stock to own. I think Netflix is totally changing the game. If you think about over the last — let’s use 18 months as a time frame, name the TV — pieces of TV content that have new pieces of content, not existing, but new content that has truly broken through. I think you’d say “This Is Us,” I think you’d say “OJ” on FX. Right? I mean, those were two — those were truly kind of like, groundbreaking shows. You would say “13 Reasons Why” and you would probably say, I don’t know in terms of truly iconic, I mean “Making a Murderer” took the world by storm. Maybe it’s “A Handmaid’s Tale.” But the point is is that so little of this content is on linear television. So Netflix is taking on so much of what I would call the iconic content. I didn’t even mention “The Crown.” But there is so much content with a big show every week or two coming out.
It’s getting harder and harder not to subscribe to Netflix. And you know, I think when you look at now over 100 million subscribers and they’re just getting started. They’re starting to really ramp up in India. They’re starting to really ramp up in Japan.
It’s early early days but there’s huge upside in market. I mean, Japan has 45 million broadband subscribers. There’s a huge potential — let’s just say there’s under a million subscribers in Japan. There’s huge runway over the next several years relative to where they are.
And so while the US at 50 million plus subscribers, yeah maybe they’ll get to 65 over time, maybe even 70 but the big upside is international now and it’s still really early. And so we continue to really like Netflix here and you know we’ve been on the thesis: Basically you want to own Netflix, you want to short Disney. You want to own Facebook and you know Twitter — I think, just Twitter’s in a really interesting position where you know Twitter just hasn’t been focused on enough.
Silverstein: Okay, great. Well thanks so much for coming in.
Greenfield: Thanks for having me.