The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
most certainly bullsbears, you’re not an exception there because I’m the same way!
If you were looking to take over a movie theatre chain then the last thing you are going to do is announce it, otherwise up goes the share price and you have to pay more. Strange goings on (and timing) by Netflix and it will only heighten suspicions.
Box Offices are recovering fast and our share price is probably only about half of where it should be for a business back making money.
https://www.thisismoney.co.uk/money/markets/article-8351307/Netflix-looked-bid-buy-2-4bn-Regal-Cinemas.html
One was bought 2019, the other 2020 from what I read.
Like Bonkers comparison of Tesco and restaurants there is massive difference in a company cherry picking the absolute premium prime sites to showcase some of their too product and them entering into owning a worldwide chain.
We have done this to death and one day it might happen.
However it seems to become increasingly desperate to hang onto it as the saviour for some of us on the share price rather than focus on the business we know we have and its continued steady recovery.
To say streaming doesn't work is rather deluded also when one business here is valued hundreds of billions and the other currently not even ONE.
There has for years and will continue to for years a place for both.
There may well be more collaboration in future, I find purchase less likely, but they are both very much unknowns.
I for one won't be counting my share holdings at couple quid a share the now on a wing and prayer hope.
Thanks Bonkers. I am convinced that Netflix is just bluffing at this stage and they know exactly how important theatre business is for movies. As you rightly point out, they were interested in the Regal bid few years ago and have also bought two theatres this year and saying the theatre business is in the decline. Absolute garbage..
I agree mountainous, I'd rather watch most of Netflix at the movies using my CW card. I barely ever watch TV at home tbh - but I appreciate I might be an exception. I just find myself getting distracted too easily - Cinema is my downtime. I just love to go , switch off and relax.
If Netflix were showing even their series at the cinema, i'd honestly go and watch them there rather than at home.
Thank you for your response smalltrader, hope you’re feeling better today.
The fact that NFLX is observing the industry bodes very well for us, it’s just goes to show that streaming is not the big player when it comes to the movie industry.
All the better for CINE :))
Precisely that bullsbears, NFLX could just push direct to cinema and they would make fantastic revenue from there.
I don’t know if they’re willing to swallow their pride and push direct to cinema, it seems massively contradictory to their business model. Time will tell if they have the courage to do it. If they do, we are well in the profit from it imo. I even think many of Netflix’s content would be better on the big screen, Mooky also mentioned he respected the product.
Fingers crossed, I would much rather they put their content in the cinemas rather than acquire the company itself.
I'd love for them or anyone to buy CINE, but tbh - Netflix could get decent gain from just releasing movies into cinemas like studios do without the headache of taking on a brand new operation, arguably outside their core area of expertise. This would be great for CINE too - as it would mean loads more 'product'.
If Netflix started distributing to cinemas, likely other streaming platforms would too - Cineworld would flourish. They'd have so much content.
Personally - I think its just a matter of time before this happens. Its becoming more and more of a no-brainer by the day for Netlfix.
The way the streaming wars will go. Netflix might need the revenue from buying a cinema chain to survive. Over 16 billion in debt. Taking on the might of Apple, Amazon and Walmart, they will need income where they can get it. Even the big studios will struggle and also will be eyeing the cinemas to safeguard their own existence.
Stephen agree now is not the time however they were interested in regal
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.thisismoney.co.uk/money/markets/article-8351307/amp/Netflix-looked-bid-buy-2-4bn-Regal-Cinemas.html&ved=2ahUKEwj7p7Tr_dHzAhXGa8AKHWVsCTYQFnoECAMQAQ&usg=AOvVaw0t6i8gffDdTD-AUkHGMDRC&cf=1
Maybe it's just now is not the time , they have changed there mind once , if something at the right price at the right time becomes available , and I'm talking any cinema chain I sure they will be in the mix.
I'm the last to talk takeover talk , but something I can see further down the line if netflix content show on the big screen and works
Netflix not looking to buy cinema chains..
https://www.reuters.com/business/media-telecom/netflix-does-not-plan-buy-movie-theater-chain-co-ceo-says-2021-09-28/
Seems me and smalltrader are actually thinking in the same way , might frame this thread lol
I disagree netflix does not become a company worth in excess of 200 billion if streaming and making movies didn't work and only music did , some of their stuff is superb and I'm sure the vast majority here have netflix or a streaming subscription at home.
For me what doesn't work is when you compare the 2 , it's a bit like comparing tesco with a restaurant, tescos food is for home and a restaurant is for a night out. Just because the two sell food doesnt mean they are in the exact same market ,they attract different audiences.
With regards to the original reason for the post I think its a fantastic find , it's something that will definitely ask questions. It's 1 theatre after all but will they be dipping their toe further in the market to see how the public take to screening their content on the big screen.
Are they seeing if showing their content is more viable and how many more chains can they get to show their content , let's not forget mooky recently said he would be happy to show their films at cineworld and why wouldn't he as I said some of their stuff is superb and deserves being on the big screen.
I don't think netflix would want cineword with the current debt , however after financials show we are hopefully moving in the right direction which I think they will and with big strides you just never know.
The very fact they have brought a theatre shows they are more then willing to dip in the market but I think it would be unbelievable news to work together , our available content would dramatically increase with first class showings attracting a huge audience with different tastes, there will be something for everyone.
Certainly something to keep a eye on.
Hi Mountainous, Netflix buying that theater is the second one in their purchase. I believe it is all experimental to gauge the response and might be collecting some metrics to see how effective these new avenues will be for Netflix. The fact that Netflix bought the second theater now indicates that they see the value.
Once cinemas get back to pre-covid levels, we might see M&A and CINE is in bargain basement prices to acquire. CINE having presence in multiple countries is a big advantage and it certainly attracts streaming giant like Netflix. Although AMC too has bigger presence but it being a meme stock with their Mcap not related to the business, CINE will be the right candidate for any acquisition if and when it gets materialised.
Great post and spot on
The facts are that streaming works great with music but not when you have to make films because of the costs
Top up while you can
Blue Monday
smalltrader- very fantastic post.
It just goes to show that streaming is no threat to the cinema at all, our profits and margins are superior to their own. If anyone wants to acquire CINE I reckon they are waiting for the end of the court case to ensure they’re at no risk of a $2.1bn additional payout, the price of this company as a whole is a bargain right now, if I had the money I’d certainly be interested.
Hoping to buy some more CINE tomorrow if we have another red day
https://www-latimes-com.cdn.ampproject.org/v/s/www.latimes.com/entertainment-arts/business/story/2021-10-15/netflix-takes-over-bay-theater-at-carusos-palisades-village?amp_js_v=a6&_gsa=1&_amp=true&usqp=mq331AQKKAFQArABIIACAw%3D%3D#aoh=16344618991006&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fwww.latimes.com%2Fentertainment-arts%2Fbusiness%2Fstory%2F2021-10-15%2Fnetflix-takes-over-bay-theater-at-carusos-palisades-village
A streaming giant buying a theater says it all. Why buy a theater if streaming is the future? This is just a start. Once cinemas are back to precovid levels next year, there could be M&A in cinema industry.
Big cinemas chains like CINE was making £4bn in revenue precovid. Streaming giants would definitely like such revenue. Netflix is getting excited about $900m they would make from Squid Game. But with owning a cinema chain, they make billions every year. AMC and CINE have world wide presence but everyone knows who is the best in the industry! With Mooky running the business successfully since many decades, one can trust him running the business for many more decades to come!