NEW YORK, July 30, 2026, 18:03 EDT
Shares of Netflix Inc. NASDAQ:NFLX ended Thursday down 0.6% at $73.17, while the S&P 500 rose 1.7%. The firms further revealed a worldwide licensing deal. AMC Global Media Inc. (NASDAQ:AMCX) placed the agreement’s value at $500 million.
The agreement, set for five years, includes seven Walking Dead series and a total of 371 episodes. Initial estimates value the nominal payment at $1.35 million for each episode. AMC holds onto streaming rights, making the deal co-exclusive.
Annual cash payments are expected to total roughly $100 million from 2027 to 2030. This represents 0.5% of Netflix’s anticipated spending on films and series. It amounts to 3.3% of expected advertising revenue in 2026.
Scale is what matters to investors. Netflix is able to rent an extensive franchise catalog rather than purchase the studio. However, these rights return to AMC following every five-year period.
Thursday’s regular session highlights Netflix’s valuation advantage.
| Company | Close | Day | Market value | Trailing P/E |
|---|---|---|---|---|
| Netflix NASDAQ:NFLX | $73.17 | -0.6% | $311.8 billion | 22.4x |
| Walt Disney NYSE:DIS | $96.16 | -2.4% | $170.4 billion | 15.4x |
| Comcast NASDAQ:CMCSA | $23.67 | -3.9% | $84.0 billion | 7.6x |
| AMC Global Media (NASDAQ:AMCX) | $9.71 | -5.1% | $0.42 billion | 10.9x |
Netflix’s trailing earnings valuation is 46% higher than Disney’s, and its multiple is nearly triple that of Comcast. This elevated premium provides less buffer for underperforming content.
U.S. regular markets had closed, with after-hours trading still ongoing. Netflix stood 4.2% higher than the previous week. It declined 2.9% for the month and dropped 37.4% over the past 12 months.
The financial impact of the agreement is limited for Netflix. The following ratios are provisional estimates.
| Measure | Disclosed figure | Comparison with Netflix scale |
|---|---|---|
| Licensed episodes | 371 | $1.35 million nominal cost per episode |
| 2026 cash payments | About $25 million | 0.13% of planned content spend |
| Annual cash, 2027–2030 | About $100 million | 0.5% of content budget |
| Annual cash versus ads | About $100 million | 3.3% of forecasted ad sales |
| Aggregate license fees | $500 million | Rights revert following five-year periods |
Lori Conkling, vice president of licensing at Netflix, said the original series “continues to attract new fans.” AMC’s Chief Executive Kristin Dolan described the deal as a “meaningful source of cash flow for years to come.” About Netflix
The advantage for the seller is more straightforward to quantify. AMC anticipates licensing revenue of $200 million to $225 million in 2026 and again in 2027. No viewership or retention benchmarks for Netflix were disclosed as part of Thursday’s updates.
Netflix continues to show moderating growth in its operations, while maintaining steady margins.
| Metric | Q2 2025 | Q2 2026 | Q3 2026 forecast* |
|---|---|---|---|
| Revenue | $11.08 billion | $12.56 billion | $12.86 billion |
| Year-on-year increase | 15.9% | 13.4% | 11.7% |
| Operating margin | 34.1% | 33.4% | 33.2% |
| Diluted EPS | $0.72 | $0.80 | $0.82 |
The company’s Q3 outlook is provisional.
Third-quarter revenue is expected to rise by 11.7%, a decrease compared to the 13.4% increase seen in the second quarter. The operating margin is projected to stay close to 33%. According to management, the outlook suggests a further slowdown in sales growth.
Advertising accounts for a minor share of overall sales, yet has a significant impact on the margin. The 2026 numbers and ratios presented here are early estimates.
| Metric | 2025 actual or implied | 2026 forecast | Change |
|---|---|---|---|
| Total revenue | $45.18 billion | $51.20 billion midpoint | $6.02 billion |
| Advertising revenue | Over $1.50 billion | Near $3.00 billion | Increase of less than $1.50 billion |
| Advertising share of revenue | Above 3.3% | Estimated at 5.9% | Lower by about 2.6 percentage points |
| Ads’ share of total revenue growth | — | — | Under roughly 25% |
Advertisements are projected to account for roughly 5.9% of revenue in 2026. If the forecast, which anticipates near-double growth, materialises, ads could contribute almost a quarter of the sales growth expected this year. As a result, established library content carries greater significance than its top-line expense might imply.
Netflix recorded over 97 billion hours of viewing during the first half, a rise of 2%. Live shows will take in upwards of 5% of content investment but are projected to account for only about 1% of viewing. The AMC licensing deal introduces an additional route for engagement, but projected viewing figures have not been disclosed.
Wednesday will bring the most direct peer comparison next week. Disney is set to announce fiscal third-quarter earnings before the market opens on August 5. Investors will focus on streaming profitability and advertising performance to gauge Netflix’s valuation.
Risks: Rights are co-exclusive and launch schedules differ across regions. Lower viewership, reduced ad demand or increased amortization expenses may offset the projected cost benefit. Starting in 2027, yearly view-hour disclosures will complicate return tracking.
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