What the Emmys Really Mean to Netflix

It's that time again. That special time when the TV academy reveals its Emmy nominations, and this year, the spotlight is on Netflix (NASDAQ: NFLX  ) . In a historic moment for television, Netflix grabbed 14 Emmy nominations for its shows, including best drama for its original series House of Cards. The fact that Netflix was nominated at all signals a major shift in the television industry at large. In the past, Emmy nods were reserved for more traditional programming outfits such as Time Warner's HBO.

Even if Netflix doesn't end up winning any of the primetime awards it's been nominated for, it offers proof that the Netflix model works. Digitally distributed content and streaming video is finally being recognized as a legitimate rival to content aired on traditional broadcast or cable networks. While being nominated won't immediately translate into profits for Netflix, it could boost the company's subscriber base.

And the winner is...
Netflix's investments in original content this year have already attracted new subscribers. In the quarter when Netflix premiered its first original series, House of Cards, the company pulled in 2 million new subscribers. This is a great indication of the power of original shows, particularly since subscriber growth is Netflix's bread and butter.

I suspect even more viewers will become Netflix subscribers thanks to the recent Emmy buzz. However, Netflix is still markedly behind cable networks like HBO and Showtime. To be sure, HBO snatched 108 nominations across its lineup of hit shows. Going forward, Netflix will need to continue cranking out hit shows if the video-streaming giant hopes to truly challenge pay-cable TV operators like HBO.

For now, what the Emmy's mean to Netflix is simple: subscriber growth. At last check, Netflix had 29 million subscribers in the U.S. However, for more insight into Netflix's viewership, we'll have to wait until Monday, when the company reports earnings.

In the meantime, investors can get the inside scoop on the future of television in this free report, "Who Will Own the Future of Television?" from the Motley Fool. This report details the risks and opportunities in TV. Click here to read the full report!


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2546471, ~/Articles/ArticleHandler.aspx, 11/26/2014 5:23:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement