Netflix needs better content, expectations too low for 2023 - LightShed Partners
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LightShed Partners co-founder Rich Greenfield said Friday that Netflix (NASDAQ:NFLX) needs to develop more "buzz-worthy" content to regain its momentum as a leader in the crowded streaming space.
"The real driver of what is going to make Netflix work again is the content. It has to be better than it was over the prior six to nine months," Greenfield told CNBC.
The LightShed co-founder added that he thinks expectations have gotten too low for NFLX for 2023. He argued that along with improved content, the streamer would benefit from building out an ad-supported subscriber tier and cracking down on password sharing.
Looking longer-term, Greenfield contended that the prospects for NFLX will be determined by the total addressable market for streaming. He estimated that from the current subscriber number of around 220M, NFLX could eventually see a figure "north of 600M."
Greenfield noted that increased competition in the streaming space has made it difficult for NFLX to maintain its expected growth rates. He specifically pointed to newcomer Peacock, NBC's streaming service, ultimately owned by Comcast (CMCSA), which has lost more than $2B in the past year in order to establish itself in the market.
NFLX also faces stepped-up competition from the likes of Apple (AAPL) and Disney (DIS).
"I do think the competition, as well as the pandemic, have certainly altered the trajectory of Netflix but in terms of the long-term potential, I think there's going to be several winners and Netflix is going to be one of them," Greenfield said.

For more on NFLX, see why Seeking Alpha contributor The Entertainment Oracle says the firm's next earnings figures "loom large" as the streamer faces "continued challenges."