Netflix NFLX has landed the new romantic comedy series Emily In Paris, originally developed and greenlighted by ViacomCBS VIAC owned Paramount Network. The half-hour series will be released exclusively on the streaming service this fall.
The character of Emily, played by Lily Collins, is an ambitious marketing executive from Chicago who unexpectedly lands her dream job in Paris when her company acquires a French luxury marketing company. She is tasked with revamping their social media strategy. Emily’s new life in Paris is filled with intoxicating adventures and surprising challenges as she juggles winning over her work colleagues, making friends, and navigating new romances.
The series had wrapped production on its 10-episode first season before the start of the coronavirus pandemic, thus emerging as a hot commodity for streamers, who will begin to feel the effect of the COVID-related production shutdown by fall when the pipeline starts drying up.
A completed season from a top creator, headlined by a big star, is likely to have attracted Netflix. For ViacomCBS as a producer, a deal with Netflix for Emily In Paris was a great financial proposition that also provides the show with better long-term prospects.
Netflix, Inc. Price and Consensus
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Solid International Content to Counter Competition
Netflix’s expanding international content portfolio is not only expected to contribute to subscriber addition but also offset stiff competition from the likes of Disney DIS, Apple AAPL and Amazon.
At the end of the first quarter, Netflix had 182.86 million paid subscribers globally, up 22.8% from the year-ago quarter. Meanwhile, lockdowns and shelter-in-place guidelines due to coronavirus helped Disney+ streaming service exceed 50 million paid subscribers globally as of Apr 8 since Nov 2019 launch. Disney+ is expected to have between 60 million and 90 million subscribers globally by the end of fiscal 2024.
Moreover, Apple’s aggressive pricing strategy of $4.99 per month for Apple TV+ has intensified competition for Netflix in the streaming market.
Furthermore, increased consumption of media content on the Internet with more and more people staying indoors due to coronavirus-induced social distancing and lockdowns has been another major driver.
Nonetheless, Netflix is well poised to make the most of this surge in consumption owing to its diversified content portfolio, courtesy of heavy investments in production and distribution of localized, foreign-language content and an expanding international footprint.
The company is working on projects across Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East to drive international subscriber growth. Notably, the company’s streaming service is available in 190 countries.
Markedly, this Zacks Rank #2 (Buy) company generated $1.72 billion in revenues from its Europe, Middle-East and Africa (EMEA) segment in first-quarter 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix expects its second-quarter paid subscriber addition to be 7.5 million, much higher than 2.7 million added in the year-ago quarter.
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