Mott Capital on Netflix, Youtube and changes
Published on Jan 30, 2017
Jane: Let’s talk about the media landscape right now, which is something that I am very interested in personally. Can you give me an overview where you see this going?
Mike: It’s shifting, I mean I think the media world we’re living in today or even the world we’re living in even last year or two years ago, it’s going to be completely changed in the next five years.
Jane: So what kind of trends can an investor jump onto when it comes to media?
Mike: I have a theme I call the On-Demand Generation. Kids that are being born around 2010 are changing the way we watch TV and the way we get content and at the forefront of that is Netflix (NFLX).
Jane: You predicted I must give you kudos here Netflix hit a record-high on incredible subscriber growth, do you think there is more to come with NFLX?
Mike: We still own Netflix, and it’s just the tip of the iceberg when you consider they have 40 million or so subscriber in the US and another 40 million internationally. There are about a 100 million households in the US, why couldn’t Netflix be in seventy percent of those homes. They may not get to the whole hundred million because they seem not to want to get into sports at this point and I don’t blame them. Then think about the international segment, tremendous development in this area and this is without China, and without India for the most part. The opportunity is enormous outside of the US.
Jane: Some others are getting into the space with YouTube is coming out with a streaming channel, do you see that as competition?
Mike: My kids are split right now; I learn a lot just from watching their habits, they are divided between youtube and Netflix, they never put on cable. There’s a lot of opportunity for YouTube somehow to start learning how to monetize what they’re doing. Right now they’re still struggling to I think the figure that out but I mean there are youtube stars that are making millions of dollars a year.
Jane: They’re owned by Google right now we should mention that.