Why Netflix could 'horseshoe' into traditional TV: Expert

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Netflix (NFLX) recently reported its second quarter earnings, revealing a gain of 8 million paid subscribers. Netflix as managed to continue to succeed with its streaming platform, while others struggle with high costs and luring subscribers.

Ish Entertainment Founder and CEO Michael Hirschorn joins Asking For A Trend for Media, Streaming, & Investing: What's Next to give insight into Netflix's earnings and why the streaming giant seems to be standing out among the rest, yet risks becoming something consumers has seen before.

"I think that the trend that is not discussed all that much that I think is pretty important is the retreat from what's called SVOD, which is the subscription video on demand, and the move towards what's called AVOD, which is advertising video on demand. So Netflix and some of the other platforms have been pushing their subscribers away from a paid subscription model to what has become a more lucrative advertising model, which should sound familiar to people because it's kind of the same model that existed in cable."

He continues with: "Increasingly, I think there's going to be a kind of horseshoe where TV viewing returns to something that looks sort of familiar to the way it did before the streaming era, except with these massive on-demand services."

For more expert insight and the latest market action, click here to watch this full episode of Asking For A Trend.

This post was written by Nicholas Jacobino