A global investment bank Jeffries mentioned Netflix among major companies poised to benefit from the booming anime industry which is expected to reach a value of $60 billion by 2030.
Since Covid-19 pandemic, the size of the Japanese market has grown and is driving the anime-related businesses. Ampere Analysis sees that anime has become a mainstream culture in the U.S. and Europe with significant potential for expansion from $31.2 billion in 2023 to $60.1 billion by 2030.
Spotify (SPOT) also reported an increase of 395% in anime music streams since 2021. Sony Group (SONY) , which is described as a leader in anime production and streaming, is also set to benefit from the anime market. And streaming platform Netflix (NFLX, Financial) who helps the increase in anime distribution has been actively licensing and funding several anime series also gain from the anime boom.
Orina Zhao from Ampere Analysis said that the Crunchyroll's merger and Netflix ramping up its distribution will increase the visibility and popularity of anime globally. For information, Crunchyroll is a dedicated anime streaming platform and just merged with Funimation to create a larger impact on the anime industry.
Anime has generated over 1 billion views in 2023 alone and become a major part of Netflix's content strategy. Crunchyroll has nearly 1,300 anime titles, but Netflix has more reach globally and production prowess is unmatched.
Netflix is scheduled to release its third quarter financial result on Oct. 17 and analysts expect higher earnings and revenues as Netflix's traffic data hits stronger in the third quarter than the same quarter in the previous year.
Based on the one year price targets offered by 40 analysts, the average target price for Netflix Inc is $715.38 with a high estimate of $900.00 and a low estimate of $545.00. The average target implies an upside of +0.33% from the current price of $713.00.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc in one year is $581.04, suggesting a downside of -18.51% from the current price of $713.00.
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