Netflix

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#41
For those who have 55mins to spare...a pretty good summary on Netflix and its future.

With capital markets starting to discipline companies who are used to losses (eg. Disney and Amazon in the streaming space), the future FCF generation capability of streaming might be interesting.

Ben Weiss - Netflix: The Original

Ben Weiss is the Chief Investment Officer of 8th & Jackson. We cover Netflix's tech advantages, the state of the streaming market, and where future cash flows are likely to come from.

https://www.joincolossus.com/episodes/99...e-original
Reply
#42
Sounds like a good plan. Margins are expanded in 2 ways - First, one needs to pay another ~35-40% to add 1 more member. Secondly, to add member, one needs to upgrade away from their basic plans.

An Update on Sharing

Members on our Standard or Premium plan in many countries (including Canada, New Zealand, Portugal and Spain) can add an extra member sub account for up to two people they don’t live with — each with a profile, personalized recommendations, login and password — for an extra CAD$7.99 a month per person in Canada, NZD$7.99 in New Zealand, Euro 3.99 in Portugal, and Euro 5.99 in Spain

https://about.netflix.com/en/news/an-update-on-sharing
Reply
#43
When Netflix first started out as a DVD seller and then renting them out, they stocked up enormous amount of inventory. To them, the cost of DVDs wasn't expensive inventory, it was inexpensive advertising - Cost of a DVD disc = 20 bucks. A reputation for having everything = priceless (Just like a Mastercard commercial)

So does it suggest that keeping a blind eye to password sharing was cheap CAC? (customer acquisition cost). Of course, Netflix is discretionary spending - one could easily unsubscribe and then subscribe back in future, still having the whole library at disposal. So in many ways, Netflix is getting more and more correlated to the general economy.

Netflix saw a spike in subscribers in the days following its password-sharing crackdown in the US.

Well, this might not come as a surprise, but Netflix’s password-sharing crackdown already appears to be working in the US. According to the data analytics company Antenna (via The Wall Street Journal), Netflix saw a huge spike in subscribers in the four days after it notified users about its paid sharing policies on May 23rd.

https://www.theverge.com/2023/6/9/237551...-crackdown
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)