Imagine this headline.
"Things are moving faster than anyone would have ever imagined," said Porter Bibb, a media analyst with more than 40 years of experience under his belt, when asked about the mad dash to become a streaming giant.
"Netflix, while a pioneer as a streaming service, doesn't have a business model that is sustainable," said Bibb. "For every one in two movies, one makes a significant loss while one makes a significant gain...No one has cracked the code to fix this, although Netflix doesn't have to deal with the ticket sales."
He believes that the Microsoft-Netflix merger could be announced in 18-24 months, but added that there will be "a few bumps in the road before anything happens."
Netflix is competing with Amazon.com Inc. (AMZN) - which is also a holding in Jim Cramer's Action Alerts PLUS - and will be competing with The Walt Disney Company's (DIS) streaming service once it officially launches.
"Amazon Prime video has 10 million more subscribers than Netflix," said Bibb.
When asked about how Microsoft would handle owning Netflix, Bibb predicts that the software giant would continue to invest heavily in "dynamite original productions."
Bibb predicts that the AT&T Inc. (T) and Time Warner Inc. (TWX) deal, which is currently pending due to a court case, will go through with some caveats. He also believes that Verizon Communications Inc. (VZ) will acquire Viacom Inc. (VIA) and CBS Corp. (CBS) once the two companies have merged.