What the Netflix Emmy Wins Mean

Reed Hastings got his wish this week, says Fool contributor Tim Beyers in the following video.

Specifically, Netflix (NASDAQ: NFLX  ) won Creative Arts Emmy awards for casting and cinematography for original series House of Cards. The remaining honors are to be awarded tonight in a prime-time ceremony.

The nods put Netflix in the same company as HBO, which spent years cultivating a reputation for producing quality programming. Today, Time Warner's (NYSE: TWX  ) cable darling dominates the Emmys with a stunning 108 nominations, including 16 for audience favorite Game of Thrones.

Netflix-backed shows enter Sunday night's festivities with a chance to take home 14 statues, including Outstanding Lead Actor and Actress in a Drama Series. House of Cards is also up for Outstanding Drama Series.

What if the show wins? Will Netflix rally on the news? Or is it time to consider shorting, as Foolish colleague Andrew Tonner suggests here? Tim answers these questions and more in the video. Please click to watch now.

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  • Report this Comment On September 22, 2013, at 8:18 PM, Idealfair wrote:

    Netflix as a stock may go up in the short term due to the positive publicity from Emmy nominations. But I would think that winning Emmy nods will actually hurt Netflix financially. Netflix does not own the content to its original series like HBO does. It would have to pay more to renew the shows if the shows win recognition. So while superficial, simplistic thinkers may buy into the "hype", the patient, wise investors will see through this and will either avoid this stock or take this as a golden opportunity to short Netflix. Just my two cents.

  • Report this Comment On September 23, 2013, at 4:02 AM, pauldeba wrote:

    The problem is that TWC has a market cap of $32 billion and a P/E of 15.5.

    Netflix hopes to be a part of that component which currently earns $1 billion and took decades to arrive there.

    So, Netflix needs to increase profits from $100 million to $1 billion and still have a P/E 20% higher than TWC, assumiing that tenfold jump in profits does not increase the price of the stock one penny. How are these numbers supposed to work? Are we also to assume that Internet TV will be surrendered to NEtflix and no one will bother to compete?

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