BTIG Says Not All Subscribers Are Created Equal when Comparing Netflix to HBO

In February of 2014 as Netflix's

stock broke the $400 mark, BTIG published a blog regarding the implied value of HBO relative to the market value of Netflix. The questioned raised by the blog was does it make sense for HBO to be valued around $26 billion as part of Time Warner

while Netflix is valued around $25 billion. On Wednesday, Netflix's Reed Hastings made a Facebook

post stating that Netflix reported higher revenues than HBO for the first time ever. Following the post, BTIG released a note Thursday stating the values for HBO and Netflix are now around $30 billion and $26 billion, respectively, as Time Warner shares have climbed in the mid-teens since the blog. BTIG commented, "While many have pointed to the global subscriber disparity in analyzing the relative market value of Netflix and HBO, we must remember that not all subs are created equally." Additionally, BTIG noted that the common response to Hasting's post has been "so what, HBO is far more profitable".