DB Financial Investment analyzed that the contract made with Netflix is significant for SBS. It raised the target price from the previous 23,000 won to 30,000 won and suggested a buy recommendation. On the 23rd, SBS's closing price was 26,000 won.
On the 24th, Shin Eun-jeong, a Research Institute analyst at DB Financial Investment, noted, “SBS recently announced that it has entered a strategic partnership with Netflix for content supply over the next six years,” adding, “From January, 15 programs including Running Man and Goal Digger, as well as some older works, will be aired on domestic Netflix.”
In the second half of the year, two SBS dramas will be sold to Netflix as global simulcast (pre-buy) rights. The number of dramas with simulcast rights is likely to increase starting from 2026.
Shin noted, “Expected effects from the Netflix contract include a larger contract scale than Wavve and the possibility of stable overseas revenue expansion through the sale of simulcast rights.” The exact scale of the contract between SBS and Netflix is not known, but considering the revenue obtained from Wavve, it is estimated to exceed 50 billion won annually. SBS earned 32.9 billion won from Wavve in 2021, 45.7 billion won in 2022, and 37.9 billion won in 2023.
Considering that overseas revenue from Netflix rights was 116.4 billion won last year, Shin believes that a revenue growth of over 20 billion won is possible from 2025 compared to 2024.
However, he said, "Due to recent political uncertainties, the advertising market has shrunk again, which lowers performance forecasts," while also stating, “I positively evaluate the Netflix contract and raise the target price.”
He added, “From 2026, dependence on TV ads may decrease, and since the burden of sports broadcasting rights expenses is no longer present, performance stability will likely expand,” while noting, “The recently skyrocketed stock price may feel somewhat burdensome in the short term, and a long-term approach seems necessary.”