10 Questions for Netflix’s Q2 2021 Earnings Interview Tonight

Here are the ten key questions investors should be asking management on tonight’s Netflix Q2 2021 earnings interview (our Q1 2021 questions can be found here). When Do You Foresee Normalized Sub Growth? What needs to happen to return to annual subscriber growth in the mid-20 million range? Related, we presume if you were not confident in the potential TAM and your pricing power, you would not continue to ramp content spending. However, given how “off” your internal models are due … Continue reading 10 Questions for Netflix’s Q2 2021 Earnings Interview Tonight

Dish Dumps T-Mobile For AT&T

Dish played an integral role in T-Mobile’s ability buy Sprint. However, the relationship between the two companies quickly soured. Dish is effectively dumping T-Mobile as its network partner in favor of AT&T. This creates a new revenue growth headwind for T-Mobile and could fan regulatory intervention over its synergy plans. Conversely, it not only provides AT&T with an incremental, high-margin revenue opportunity, but might also provide access to additional mid-band spectrum that would improve network performance over its peers. Dish … Continue reading Dish Dumps T-Mobile For AT&T

Downgrading American Tower And Crown Castle To Neutral

We are downgrading American Tower and Crown Castle to Neutral from Buy, on the back of a rally in treasuries, a contraction in the spread of AFFO yields to the 10 year treasury and a lack of near-term events that can drive better than expected growth. We recommend investors interested in maintaining exposure to the predictable growth of the US tower industry swap into SBA Communications, which has not rallied as much as its peers and still offers some opportunity … Continue reading Downgrading American Tower And Crown Castle To Neutral

Connected TV Ad Market: What and Who Defines Quality?

The entire ad market may be hot right now, but the connected TV (CTV) ad market is especially on fire. Brands are looking for new ways to reach consumers, with linear TV viewership continuing to both evaporate and age up to increasingly unappealing demos. Revenue growth is surging at sixteen year old YouTube (table embedded below from our April 2021 tweet), with its fastest growing segment of viewership on televisions. In fact, Comscore reported that in March 2021, YouTube actually … Continue reading Connected TV Ad Market: What and Who Defines Quality?

How Does Spotify Win in Podcasts? They Need to Channel Their Inner Netflix

Ahead of Spotify’s direct listing in April 2018, they hosted an investor day (our handbook for that event can be found here), where numerous comparisons were made to Netflix, particularly by then Spotify CFO (and former Netflix CFO), Barry McCarthy. The word “Netflix” was actually mentioned five times during the investor event, four by McCarthy. While Netflix and Spotify shared similarities in terms of being the leaders in global direct-to-consumer streaming in video and audio respectively and a singular focus … Continue reading How Does Spotify Win in Podcasts? They Need to Channel Their Inner Netflix

Increasing Anterix Target to $96

We are increasing our Anterix price target to $96 from $64 based on our increased confidence that electric utilities understand the cost of spectrum for private LTE networks. The electric utility As we continue to peel the onion on opportunities in the IoT space, it has become clear that electric utilities’ needs are different than other utilities or large enterprise customers. This view is based on numerous additional discussions with IoT ecosystem participants inside and out of the electric utility … Continue reading Increasing Anterix Target to $96

Initiating On CTAC With A Buy Ahead Of Merger With KORE Wireless

Today, we are recommending KORE Wireless, which sits in the middle of the IoT ecosystem with an enablement platform. This appeals to large Enterprise customers implementing end-to-end solutions or IoT solutions providers themselves, attempting to bring their specialized services to a global market. Specifically, our new Buy rating and $14 price target is on Cerberus Telecom Acquisition Corp (CTAC-$9.94), the SPAC that is taking KORE public, in a transaction that should close in Q3. IoT growth is driven by multiple … Continue reading Initiating On CTAC With A Buy Ahead Of Merger With KORE Wireless

New SVOD Entrants All Making Critical Mistake: Optimizing for Wrong Outcome(s)

When you walked into Les Moonves’ office, you saw a huge board showcasing the CBS primetime programming line-up vs. their broadcast network peers. Of course, there was competitive programming beyond what aired on broadcast TV, not to mention other forms of entertainment.  But “what mattered” was which broadcast network had the most viewers, especially within the adults 18-49 demographic, which is coveted by advertisers.  More eyeballs than others meant your network commanded more ad dollars than your peers – that … Continue reading New SVOD Entrants All Making Critical Mistake: Optimizing for Wrong Outcome(s)

Implications Of Canada’s C-Band Decision on 5G And Telesat

The ISED, which is Canada’s version of the FCC, finally announced its plans for the C-Band spectrum in Canada. We discuss the implications for 5G in Canada and Telesat, the primary existing user of that spectrum. The decision The ISED will not auction C-Band spectrum until Q1 of 2023. That’s 2 years later than the FCC’s $80 billion auction of C-Band spectrum and even more delayed than other markets around the globe. The ISED is effectively taking 300 MHz of … Continue reading Implications Of Canada’s C-Band Decision on 5G And Telesat

Zaslav Conquers the Throne: Five Main Implications for TMT Sector

4 1/2 years ago in late 2016, we spent the weekend pondering the implications of AT&T’s acquisition of Time Warner (link). That transaction took almost two years to close (link to our thoughts at closing) and now, just 2 1/2 years after closing and only 18 months since the hiring of a new CEO/management team, AT&T is set to spin-off the renamed WarnerMedia into Discovery, effectively recreating the old Time Warner with even more linear cable network exposure and unscripted … Continue reading Zaslav Conquers the Throne: Five Main Implications for TMT Sector