Media giant Netflix shouldn’t be too worried about Apple’s brand-new streaming service, which will be supposed to be announced on Monday, closely followed analyst Mark Mahaney told CNBC.
which’s partially thanks to the highly anticipated season 3 Discharge of Netflix original “Stranger Things,” Mahaney, RBC Capital Markets lead tech analyst, told “Squawk Alley” on Friday.
“We think which can be reason by itself to buy stock inside short term,” Mahaney said of the show, which has earned more than 30 Emmy nominations since its debut in 2016.
Mahaney said the various other reason will be the sheer number of the company’s subscribers. Netflix will be on track for having 0 million subscribers, in addition to Mahaney said he expects which to reach 300 million in three to four years.
The streaming giant “can economically outspend anyone else,” he said. which year the company will be reportedly spending nearly $7 billion in cash to expand original content, while Disney will be supposed to spend around $1 billion on original content.
As NBC, Disney in addition to Apple announce they’re joining the streaming market, Mahaney said most consumers will use only two or three entertainment bundles in addition to Netflix will be likely to be one of those.
which doesn’t mean there won’t be competition. CNBC previously reported which Apple’s service will be supposed to give iPhone in addition to iPad users access to free original content as well as subscription channels.
Shares of Apple rose on anticipation of the announcement, in addition to Needham raised its cost target on the stock to $225 by $180. Needham analysts wrote which if users adopt Apple’s streaming service, which “should lower churn in addition to drive higher lifetime value.”
yet Mahaney said Netflix has the subscribers in addition to the funding down right. While Apple includes a large cash balance on hand, Mahaney said which’s unclear whether Apple “wants to directly take on Netflix.”
“which offering doesn’t seem as directly taking on Netflix as, say, the Disney offering does,” he said. “Apple has the cash if they want to get into which. The question will be whether they could actually get the economics like Netflix can in order to justify which.”