Netflix Goal of a New Original Movie Every Week Is 'Ambitious': Wedbush

Netflix's recently announced 2021 slate of original films, enough to release at least one new original movie every week, is an “ambitious and costly goal, particularly as the service is touting its A-List-driven content,” Wedbush analyst Michael Pachter wrote investors Thursday. He expects 2021 content consumption to track with 2020 levels but to normalize as COVID-19 vaccinations reach a large portion of the population, which Wedbush estimates at Q3. It expects Netflix to reach break-even by year-end 2022 “as content consumption normalizes, subscribers grow and content spend once again ramps higher.” COVID-19 restrictions limiting Netflix’s ability to produce content accelerated the company’s path to generating free cash flow, Pachter said. Wedbush modeled Q4 revenue at $6.58 billion, with subscriber net additions of 300,000 domestically, 4.7 million internationally. Netflix reports earnings Tuesday.