Netflix is lending credence to the phrase "content is king." The $246 billion video-streaming service struck a five-year deal with Sony Pictures for the rights to Marvel's Spider-Man movies and other flicks after they play in theaters. Along with the Sony deal and the acquisition of the rights to produce two "Knives Out" sequels, Netflix may end up spending approximately $1.5 billion, according to the Wall Street Journal.
The onslaught of rival streaming services from Walt Disney, AT&T and others requires Netflix to scour the world for movies and TV series to attract subscribers. At some point, it might make more sense to snap up a movie studio. Goldman Sachs reckons ViacomCBS' film unit Paramount Pictures has an enterprise value of nearly $2 billion as a stand-alone division. Lions Gate Entertainment is a bit pricey at $6 billion. Netflix is conservative when it comes to M&A. Yet a deal for a movie studio may be a cheaper way to acquire content.