Cowen on Netflix (NFLX): 'Ad-Supported Tier Implies Significant, Multi-Year Revenue Opportunity'
Cowen analyst John Blackledge reiterated an Outperform rating on Netflix (NASDAQ: NFLX)
The analyst comments " Our Cowen survey suggests a NFLX ad-supported tier could add ~4MM UCAN members in ’23, above our current est. An ad tier could generate rev per member of $17/month split between ad rev of ~$10 & sub rev of ~$7. 41% of existing members would switch to an ad tier, implying a blended ARPU that is +8% vs 1Q UCAN levels. We est. that these potential ad tier members could generate UCAN rev of $881MM in '23, or 6% upside to our current NFLX forecast. We think this ad tier could drive significant LT rev upside. Maintain Outperform. "
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Shares of Netflix closed at $167.54 yesterday.