Analysts See Netflix Rebound
Despite losing $16 billion in market value after a disappointing quarter, the future of Netflix looks good, thanks to its “backbone” of strong original content.
“Wall Street analysts were urging clients to remain calm in the wake of Netflix’s disappointing earnings report after the bell on Wednesday. The company only added 2.7 million global subscribers while Wall Street expected the number to be closer to 5 million. It also reported an unexpected loss in U.S. subscribers,” writes Michael Bloom of CNBC. “Many analysts are already predicting the streaming giant will bounce back in the third quarter anchored by Netflix’s original show, ‘Stranger Things.’”
From my perspective, I believe the analysts are correct. Netflix demonstrates the value of a brand that consistently delivers cutting-edge technology and superior consumer experiences. That’s a winning combination, unquestionably.
MIT Study Supports Link Between Revenue Growth and Technology Expertise on Corporate Boards
For several years, I’ve been speaking and writing about the critical importance of having CIOs and other tech leaders serving on corporate boards. Recently, the Massachusetts Institute of Technology’s Center for Information Systems Research published a study showing a strong connection between revenue growth and tech leaders serving on boards.
“The analysis showed that out of 1,233 publicly traded companies with revenues over $1 billion, about 24% had board members that were classified as technology experts. These board members included those with experience as a chief information officer or chief technology officer and expertise in software, digital platforms, big data and innovation, among other skills,” write Sara Castellanos and Angus Loten in The Wall Street Journal. “Revenue growth over three years for boards with three or more such directors was 17.6% compared with 12.8% for boards without technology experts. Market capital growth over three years was 31.3% compared with 23.3%. Boards with three or more tech experts also had a 34% higher return on assets, according to the study.”
I urge you to read the article and get a copy of the MIT study. Corporate boards need the expertise, experience and knowledge of senior technology leaders to grow the business and compete effectively in rapidly evolving markets.
Amazon Aims to Retrain Employees for High Tech Workplace of the Future
Amazon and other large-scale retailers are taking steps to prepare their workforces for the challenges of the future. From my perspective, it seems likely that massive retraining strategies will soon become commonplace as the pace of digital transformation accelerates.
Amazon said last week that it plans to invest “$700 million to retrain about a third of its American workers to do more high-tech tasks, an acknowledgment that advances in technology are remaking jobs in nearly every industry — and that workers will need to adapt or risk being left behind,” write Ben Casselman and Adam Satariano in The New York Times. “Amazon said the program amounted to one of the world’s largest employee-retraining efforts. It will apply across the company, from corporate employees to warehouse workers, retraining about 100,000 by 2025. Amazon has about 300,000 employees in the United States.”
As technology executives, we’ll need to keep a close watch on these types of retraining and reskilling programs. It’s only a matter of time before some of these programs become part of our portfolio as tech leaders.