Netflix, Inc. Is Copying... Starz?

First, Starz orders two seasons of "Black Sails" before the series premiere. Now, Netflix has ordered a third season of "House of Cards" before this week’s season two debut.

Feb 11, 2014 at 6:00PM


Good news, marathon viewers! You'll have more to look forward to after binge-watching the new season of House of Cards, which goes live on Netflix, Inc. (NASDAQ:NFLX) this Friday. A season three order is already in the works.

But is it a smart investment for the company, which is still a relative newbie as a producer of original series? Among competitors, only Starz (NASDAQ:STRZA) has been so bold, ordering two seasons of Black Sails ahead of January's series premiere. In the video above, Fool contributor Tim Beyers explains why he likes Netflix's aggressiveness.

First, House of Cards has established its bona fides during awards season having won three Emmys and a Golden Globe for Robin Wright, who took home honors as best actress in a television drama. The ensuing buzz has cemented the show as Netflix's signature property. Tim says it's likely at least 2 million to 3 million viewers watched the first season of the series when it aired last February.

That alone would probably be enough to get Chief Content Officer Ted Sarandos to ink a new deal, yet there's also a second dynamic to consider. Hollywood is locking up talent earlier and more often when it comes to signature properties. In booking a season three now, Netflix gets to tease its subscriber base while also guaranteeing that the show's principal players don't get embroiled in conflicts before pre-production begins, Tim argues.

Now it's your turn to weigh in. Will you be binge-watching House of Cards this coming weekend? Do you agree with the strategy of ordering a season ahead? Please watch the video to get Tim's full take and then leave a comment to let us know whether you would buy, sell, or short Netflix stock at current prices.

House Of Cards

Kevin Spacey stars in House of Cards, which returns for a second season on Feb. 14.
Image source: Netflix.

Hollywood will pay you for tuning in -- really
The entire foundation of the entertainment industry is shifting, leaving $2.2 trillion up for grabs. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Google, and Netflix at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends and owns shares of Apple, Google, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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