Netflix to Develop TV Series, Movies on Chronicles of Narnia

Netflix (NFLX Free Report) is now venturing into the fantasy genre to counter increasing threats from Amazon (AMZN Free Report) as well as ATT’s (T Free Report) HBO in the streaming market. Reportedly, the company inked a deal to produce new television (TV) shows and movies based on C.S. Lewis’ popular Chronicles of Narnia series.  

HBO is the dominant name in the fantasy genre, thanks to its immensely popular Game of Thrones series. Reportedly, the company is also developing Game of Thrones spin-offs.

Moreover, last year, Amazon grabbed the rights of the immensely popular The Lord of the Rings series for television adaptation, exclusively for its Prime streaming service. Reportedly, the company paid $250 million for the rights, while production costs are estimated to reach $500 million.

Netflix’s decision to adapt Chronicles of Narnia surely increases the heat. HBO is expected to stream the last season of Game of Thrones, sometime in 2019. Reportedly, Amazon is also expected to stream The Lord of the Rings in November 2019.

Netflix’s Portfolio Strength to Drive Growth

Netflix’s focus on streaming quality content, including original productions, has been a major growth driver in recent years. This has enabled the company expand subscriber base as well as win accolades and awards.
 

Netflix, Inc. Price and Consensus

Netflix, Inc. Price and Consensus | Netflix, Inc. Quote

 

This year at Emmys, Netflix tied with HBO and won 23 trophies in different categories. Netflix’s shows have been rapidly gaining popularity as the company received 112 nominations in 2018, significantly up from 91 in 2017 and 54 in 2016.

Netflix’s enhanced focus on original content benefited the company immensely. Moreover, aggressive spending on content acquiring is expected to help it steer away competition.

The company has roped in some big names to produce new content for the platform and is set to release 470 original shows in 2018. Netflix is set to spend $8 billion on new content production, this year alone.

Furthermore, speculations are rife that Netflix might eventually expand beyond its current on-demand TV and movie model to offer live news or sports, with the likes of Facebook, Twitter, and Amazon joining the live content bandwagon.

Zacks Rank Key Picks

Netflix currently has a Zacks Rank #3 (Hold).

Townsquare Media (TSQ Free Report) is a better-ranked stock in the same sector. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long term earnings growth rate for Townsquare is pegged at 4.5%.

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