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Is Netflix Likely to Compete with Vice?

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Netflix is exploring the news genre

At the UBS (UBS) Global Media and Communications Conference held on December 7, 2015, Netflix (NFLX) was asked about its competition with Vice. Along with movies and TV shows, Netflix also streams edgy documentaries.

Netflix plans to explore the news genre by early 2016, when it expects to stream a weekly talk show hosted by Chelsea Handler. However, Netflix has ruled out specific news-based shows that involve news gathering, as it does not foresee such shows fitting into the company’s streaming business model. Netflix is exploring new content types because it wants to boost its subscriber base by providing varied programming to its users.

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About Vice

The Walt Disney Company (DIS), along with Hearst A&E Network, has a 15% stake in Vice. On December 8, the Financial Times reported that Disney has increased its investment in Vice to $400 million to increase its stake to roughly 9%. This stake is separate from Disney’s joint investment in Vice with A&E Network.

Another media company that also has a stake in Vice is 21st Century Fox (FOXA), which invested $70 million in the company around two years ago. Vice produces edgy, provocative documentaries. Earlier this year, it struck a deal with Time Warner’s (TWX) HBO to produce a news program for the channel. Vice Media also plans to launch its own channel, called Viceland, in early 2016.

Disney makes up 1.74% of the iShares Russell 1000 Growth Index (IWF) ETF. For an investor interested in getting exposure to entertainment stocks, IWF has a 49.98% exposure to that sector.

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