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News Could Be a Tempting Direction for Netflix: Analyst

News might be a tempting option for Netflix, with its high margins and daily engagement, but it also comes with significant risks, nScreenMedia's Colin Dixon wrote Wednesday. News "could attract the unwanted attention" of governments around the world, but it…

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also could help Netflix build loyalty and boost profitability, he said, adding that cable news networks' profit margins make it an attractive business. Dixon said Netflix might want to replicate elsewhere the approach it's taking in France, where Netflix subscribers will be able to watch TF1 channels and on-demand content on Netflix starting next summer. Under that approach, TF1 carries the government scrutiny for its LCI news channel, while Netflix gets content that helps keep people on its app, Dixon added.