Investment strategist names No. 1 streamer: 'Netflix is the Kleenex of streaming'
Brian Belski, BMO Capital Markets Chief Investment Strategist, discusses the consolidation of streaming companies and his bullish case for Netflix.
You can see the full interview here.
Key video highlights
00:17 On the case for consolidation
00:30 On the winner of streaming
00:47 On Disney's potential
01:05 On the expense of content.
- I think from a contrarian basis, if you're looking for names that the market has hated, but maybe have a big theme around it, we love the communication services sector from a thematic perspective in terms of-- we call it the three C's of communication services-- cash, content, and consolidation. I think the streamers are going to consolidate.
DAVE BRIGGS: Who could consolidate? Who could be the winner?
- Well, listen, I, not unlike all other Americans, I'll get, like, 10 streaming services. It's too much, right? So the winner and the one that we've stayed with all along and received a lot of negative press about it is Netflix. I think Netflix is the Kleenex of streaming, bottom line, period. Best run, cash flow, now they're going into advertising-- fantastic. They will be the core, right?
I think Disney is going to be part of the core. What happens to Peacock and Paramount+ and all of these others, I think, remains to be seen. And so I think that's kind of where you want to look with respect to potential consolidation, especially given the fact that the content is becoming much more expensive in the streams. And how we're going to deliver that content, Netflix has got it right.
SEANA SMITH: So we got--