"There will be no reason for Netflix (Nasdaq: NFLX) to exist in the future."
So says the National Inflation Association (NIA) in its 58-page TV Everywhere Stock Suggestions Report issued Aug. 6. The report's overall conclusion is that TV Everywhere will conquer Netflix and other OTT competition by allowing consumers to "watch just about all of the programming Netflix has available, plus a lot more."
NIA describes itself as "an organization that is dedicated to preparing Americans for hyperinflation and helping Americans not only survive, but prosper in the upcoming hyperinflationary crisis." The purpose of the report, however, is to also point out what public companies will prosper in an inflationary environment—and why—with special emphasis on those companies with TV Everywhere technology. Thus, the report does not specifically focus on the service providers, but those companies with TV Everywhere technology.
While taking pains to lay out all the warts covering the pay TV industry—including ever-spiraling prices that antagonize older viewers, disenchant younger ones and that have even driven some viewers off pay TV services altogether and back onto antenna-fed systems—the report concludes that "TV Everywhere is revolutionizing the TV, movie and media industries and will make Netflix obsolete."
Cost, ironically, is the reason why pay TV operators will defeat OTT and rein in cord cutters, the report concludes.
"It is amazing how the mainstream media can continue to claim that inflation in the U.S. is not a problem when most Americans watching the financial news on TV are now paying an average U.S. monthly cable TV bill of $128," the report said. "Shockingly, Americans are today paying triple the average monthly fee for cable TV that they paid a little over a decade ago in 2001."
TV Everywhere, the report suggests, will enhance the value of a pay TV subscription by allowing subscribers to access their content on multiple devices. The value of OTT packages, however, will be diminished.
"Over-the-top content providers like Netflix have been hurt most by soaring costs for content distribution rights," the report suggests.
True to its purpose, the report details the backgrounds of multiple TV Everywhere vendors before concluding, "TV Everywhere stocks are about to make a run similar to the dot-com stocks in 1998 through 2000."
The report partly bases its conclusions on NBC's TV Everywhere London Summer Olympics coverage, which, the report said, is surpassing even the high expectations of the network and its parent company, Comcast (Nasdaq: CMCSA). This success, the report added, will drive the entire pay TV industry as it adopts TV Everywhere throughout its line of programming and supplies content to more connected devices.
NIA is especially high on Synacor's TV Everywhere platform and how it works with and against other TV Everywhere platforms.
"Every single provider of digital television, whether it's cable, telephone or satellite company, will soon be forced to deploy TV Everywhere technology or risk being left behind their competitors," the report says. "Americans are beginning to demand TV Everywhere and if their cable company doesn't provide it, American consumers are likely to switch to a telco or satellite digital television provider that is using SYNC's TV Everywhere platform … by far the best available in the industry because it allows users to sign into their accounts on any device regardless of operating system or browser, eliminating a major pain point for consumers."
Other TV Everywhere suppliers getting a look in the report include Envivio, SeaChange, Brightcove, TiVo, Rovi and Harmonic.
- see this report from the NIA (.pdf)
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