Analysts: AMC, Cinemark, Netflix Won’t Suffer Greatly From Warner Bros.’ 2021 Streaming Scheme

The fears of cinema collapse are an “overreaction,” there is no “death star,” analysts say.

One analyst, Matthew Harrigan of Benchmark, went so far as to say Netflix will not experience significant problems from the Warner Bros. move. He remarked the “oft bumbling HBO Max is not exactly the Netflix ‘death star,'” and boosted Netflix’s price target to $492, though this remains slightly below the stock’s current value of approximately $499.

Bloomberg reports cinema company executives responded swiftly to the Warner Bros. news. In an email, AMC CEO Adam Aron commented Warner seems to be “sacrificing” its movie division’s profitability “to subsidize its HBO Max start-up.” Cineworld Group (OTC:CNNW.F)owner of the Regal Theater chain, says it anticipates reaching a positive negotiation outcome with Warner because it is “very encouraged by the giant steps achieved recently with regards to the Covid-19 vaccination process.”

Source: Analysts: AMC, Cinemark, Netflix Won’t Suffer Greatly From Warner Bros.’ 2021 Streaming Scheme