Netflix takes Emmy and losses of shares while his rivals are aiming

Netflix sees red – and we're not talking about the color of the ubiquitous streamer logo.

Less than 24 hours after the "over-the-top" pioneer finished second behind HBO for most Emmy Awards for a network, the company's shares were battered on Wall Street. At the close of the market, Netflix fell 1.8% Monday, relegating the stock to one year for the first time since November 2016, according to Dow Jones Market Data.

For a long time one of the favorites of the FAANG group – Facebook, Amazon, Apple, Netflix and Google – Netflix has been one of the most successful of the market this year, before fears of a slowdown in user growth and increased competition Stock. In fact, every action FAANG is now in the OTT video game in one form or another. This was not the case two years ago.

The troubles of Netflix could be good news for HBO, owned by AT & T. The king of long-standing pay TV cable dominated the 2019 primetime with 37 wins in total including the big win of the night for the series of mystical and hectic adventures filled with "Game of Thrones" dragons, which brought the coveted Outram Drama Emmy.

The cable network outstripped its rival Netflix, which recorded 27 wins, while the competing distribution / distribution giant, Amazon, completed the top 3 with 15 awards at the Microsoft Theater in Los Angeles on Sunday night.

The victory at the top of the Emmy battle is giving HBO an edge as it prepares to enter the war with its new platform, HBO Max, which is expected to be launched in the spring of 2020.

But will the average consumer use Emmys as a tool to determine where to spend their dollars on streaming? Will viewers consider Emmy a victory for Amazon's "The Flea Bag" or Netflix's Emmy Award for the thrilling "Ozark" crime drama to change the way viewers look?

"Probably not, I do not think HBO is beating Netflix at the Emmy table, apart from industry insiders, because the average consumer does not know which shows have won or not," said Dan Rayburn, Streaming Specialist. , at FOX Business.

"An Emmy award is not something the average viewer thinks before choosing a streaming service or program to watch," said Rayburn, president of the Streaming Summit, an industry conference.

When HBO Max enters the battle in the spring, the media giant will fight a war against other new services, Disney +, Apple +, and the new streaming service of NBC, Peacock, as well as the old streamers Netflix, Hulu and Amazon.

HBO has not yet announced the price of its subscription to Max, but the latter autonomous costs $ 15 per month. If the new streaming service gives viewers more access to a larger catalog, the cost could be higher.

WarnerMedia – the division of AT & T that oversees HBO Max – noted that the new service will host at least 10,000 hours of premium content when it goes live. "HBOMax will also include a ton of content from HBO's content list, and it's said that they could include live channels and live content, but I think HBO is still figuring it out all the time "said Rayburn.

In 2018, Netflix achieved a turnover of $ 15.79 billion, while HBO, which had participated in a merger with Time Warner-AT & T the same year, realized a turnover of $ 15.79 billion. business of $ 3.2 billion subscribed during the same year.

More important than Emmy wins, Rayburn said the data is much more important to judge these services. "None of these streaming services will share data with us on what leads to new customer additions or what keeps customers on the platform, or which shows that they are most involved." Rayburn explained, "they have all this data, but they refuse to share it."

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"Netflix has nearly 160 million users around the world and what HBO will do to draw from it is to continue to create as much content as possible that can reach as wide an audience as possible," Rayburn says. .

Another challenge that Netflix is ​​facing, in particular, is the value of Wall Street for the company. On Monday, Barclays unveiled a new valuation framework that believes that the current Netflix valuation can only be justified if the company increases its revenue per user while reducing its customer turnover rate – a challenge on the market. market of streaming more and more competitive.