Netflix Chief Financial Officer Spencer Neumann said the giant streamer remains indifferent to legacy media networks even as a record number of companies seem to be peeling them off or putting them up for sale.
“We agree continued consolidation of studio and network assets is likely, but at least with respect to consolidation within legacy media, we don’t think it materially changes the competitive landscape,” said Neuman on a Q&A with analysts after Netflix’s latest quarterly earnings. “We’ve historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook.”
The streamer’s outlook may not be changing but the ecosystem sure is. Comcast is in the process of spinning out NBCUniversal’s cable networks into a standalone public company called Versant. Warner Bros. Discovery is doing the same with its networks. Lionsgate and Starz separated. Disney and Hearst have floated the possibility of unloading A+E Global Media. A merged Skydance and Paramount (if and when) may opt to shed some assets. M&A opportunities abound for Netflix or other tech companies to swoop.
“We look at a lot of things,” said Neumann. “We apply a framework or lens to those opportunities. Is it a big opportunity? Does it strengthen our entertainment offerings? Does it strengthen our capabilities? Does it accelerate our strategy? And we look at all of that relative to the opportunity cost of distraction or other alternatives. You know, we’ve been pretty clear in the past that we also have no interest in owning legacy media networks, so that also kind of reduces the funnel for us.”
“We believe we can and will be choosy. We’ve got a great business. We’re predominantly focused on growing that organically, investing aggressively and responsibly into that growth and returning excess cash to shareholders through share purchase. And I think you’ll see us continue on that path.”
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