The consumer TV landscape was once giddy with the prospect of cutting the cable cord, freeing viewers from increasingly high prices. For many consumers, however, that glow has long faded. This week, Disney+ announced price increases which will raise most customers' bills by $2 to $3. Last month, Apple TV+ raised prices for the third time in three years. These moves followed increases earlier in the year from a wide range of streamers, including Netflix, Discovery+, Peacock, Dropout.tv, Paramount and Fubu.Co ...

Core Viewpoint - Netflix is set to release its latest quarterly earnings report, with its stock price nearing a three-year high, raising significant interest in the company's future prospects [1] Group 1: Earnings Expectations - Analysts expect Netflix to report a second-quarter earnings per share of $6.70 and revenue of $11.3 billion, representing year-over-year growth of 24% and 15% respectively [1] - The market has high expectations for Netflix's upcoming slate of major sequels, including the highly anticipated "Stranger Things" [1] Group 2: Business Model Transformation - Netflix has diversified its growth drivers by optimizing its business model, which now includes advertising sales, subscription price increases, and live events such as sports and concerts [5] - The company has stopped reporting quarterly user data, shifting investor focus towards revenue and profit expectations [5] - Analysts from Bank of America believe Netflix is well-positioned due to its unmatched scale in the streaming sector, further user growth potential, and significant opportunities in advertising and live sports/events [5] Group 3: Valuation Concerns - Despite an optimistic outlook, high valuation levels have raised concerns among some analysts, with Seaport Research Partners downgrading Netflix's rating from buy to neutral [6] - Analysts caution that if Netflix fails to raise its full-year sales guidance of $43.5 billion to $44.5 billion, it may disappoint investors [6] - There are concerns about changing viewing habits, with YouTube potentially surpassing Netflix in the U.S. streaming market [6] Group 4: Analyst Ratings and Market Sentiment - Over two-thirds of analysts have given Netflix a buy or equivalent rating, with expected revenue growth rates for the next three quarters ranging from 14% to 16% [7] - Analysts generally view Netflix's high multiples as a reflection of market enthusiasm for its anticipated content, including new series like "Wednesday" and "Happy Gilmore 2" starring Adam Sandler [7]