That's a really great idea. But if #Netflix really wants to generate more revenue, all they have to do is stop letting people share accounts with others who don't even live with them. Almost everyone I know has #Netflix. Virtually none of them pay for it themselves. Either they share an account with friends, or just use a relative's login. I don't get why #Netflix allows this to continue.
I think #Netflix users are a bit like #Apple fan boys. They love the product so much, they are blind to any detractions, even when valid and critical to the company's long term health. I think we can all agree, Netflix has a wonderful product with many satisfied users. But the financials don't lie and can't be ignored.
Good comment thread. Yes, #Netflix has much to offer and a rabidly loyal customer base. But the financials can't be ignored either. And unlike TV networks, they can't make up additional revenue in advertising without alienating the very customers whose loyalty the company relies on to survive.
I believe the solution is to take a page from #Disney's book and focus more on licensing. Sure Disney made billions of people paying to see it's lovable princesses, and other cartoon characters, not to mention the Star Wars franchise. But they've many more billions off the licensing of these characters.
Netflix has come up with some really top tier original content for both adults and kids. Not to mention brought over some cancelled shows which already had cult followings. They should leverage these character with licensing opportunities and bring a much needed additional revenue stream. $NFLX$DIS
Not just persevere, but excel and obliterate the competition. Don't forget that many said #Netflix's days were finished when #Walmart, #Blockbuster and others tried to compete with them. Which of those other companies are still standing? Only one! $NFLX
I think #Netflix is the clear leader in the streaming space and even the major competitors like the #Amazon powerhouse with it's edge in compatible hardware or extra benefits (like Prime shipping) or companies like #Sony with it's vast libraries of videos can't compete.
Netflix has the largest offering, the most critically acclaimed original content, the best tech and the most loyal fanbase. While the companies financials could be better, the fact that they've been able to take it's first mover advantage and persevere despite the intense competition shouldn't be so quickly dismissed.
Unlike most products they can continue to raise prices and I and many others would continue to pay. $NFLX$AMZN$SNE
I don't think that's so clear cut. #Netflix hasn't raised it's prices much and is still a bargain for what it offers. Netflix is still much cheaper than #Hulu which charges $11.99 per month (for no commercials, like Netflix). On the contrary, I think that this increase is meant to fuel a greater investment in it's original content since this is one area where others can't compete (at least not without investing billions themselves). And even then, loyal fans will stay with Netflix for it's original shows which they have come to love. $NFLX.
"As we have written for some time, investors will not tolerate huge cash flow losses forever." Sadly #Netflix and others have so far proven this thesis incorrect. I do however agree that they should not. The simple fact is, although the stock price rises, their model is becoming more unsustainable, not less. $NFLX
I learned this about #4Ktvs the hard way. Was in the market for a new TV and was blown away by the 4K demos in store. Got the TV home and found I literally had no 4K media to watch. Figured I'd buy some DVDS.... nope, no 4K dvds/dvd players are out yet.
Well, at least I could upgrade #Netflix to get at least SOME content in 4K. Oh wait, that costs more than the standards $NFLX plan. Oh well, took the plunge only to see no difference. Contacted Netflix to find out why and they said I'd need to upgrade my HDMI cable and upgrade my cable internet plan to get more bandwidth. What a waste.
It was my understanding that with #Netflix's global expansion, the majority of their offerings were not available outside the US. I wonder if that's the same with #Amazon or not.
Interesting that it seems to be a stand alone service from #Amazon in countries where they don't offer #AmazonPrime. But how much will they charge after the introductory offer expires? I wonder... Either way, it could be some unwanted competition for #NEtflix which has invested heavily in this area. $AMZN$NFLX
Loved "Stranger Things" on #Netflix. Original content can certainly lead to new subscribers. I have many friends who joined Netflix just to watch House of Cards, or HBO to watch Game of Thrones.
I agree that at some point the growth model stall, but we are a long time away from that. #Netflix is making massive inroads in the global market, but are only just scratching the surface of it's potential. And as highspeed mobile internet continues to expand in underdeveloped regions, the market for Netflix will only continue to grow.
Entire generations all over the world are poised to enter a lifetime of binge watching, and non-productivity. Bad for the world, but great for $NFLX.
Interesting read but I have to take issue with your comment that "For creating new content, there are no barriers to entry." How can you say that? Creating a quality TV program or movie can take hundreds of millions of dollars. Especially if it involves a cast with star power. #Netflix and #Amazon definitely excel at this. Personally I think #Hulu and #YouTube fall short. $NFLX$AMZN
If going long, I am a small cap value guy. I think the larger markets are overvalued and due for a 35% correction. Timing.... Who knows?!
I've had people ask me about #Netflix recently. I don't like the valuation at all. PE of 322. What?! Forward PE of 125. What?!
I don't care if $NFLX is creating wonderful new programming. At some point the growth model stalls. There's not enough demand for that. My kids spend all day watching YouTube. People make content for free every day.
Netflix’s Price Increase Signals Original Content Isn’t Enough
That's a really great idea. But if #Netflix really wants to generate more revenue, all they have to do is stop letting people share accounts with others who don't even live with them. Almost everyone I know has #Netflix. Virtually none of them pay for it themselves. Either they share an account with friends, or just use a relative's login. I don't get why #Netflix allows this to continue.
Netflix’s Price Increase Signals Original Content Isn’t Enough
I think #Netflix users are a bit like #Apple fan boys. They love the product so much, they are blind to any detractions, even when valid and critical to the company's long term health. I think we can all agree, Netflix has a wonderful product with many satisfied users. But the financials don't lie and can't be ignored.
Netflix’s Price Increase Signals Original Content Isn’t Enough
Good comment thread. Yes, #Netflix has much to offer and a rabidly loyal customer base. But the financials can't be ignored either. And unlike TV networks, they can't make up additional revenue in advertising without alienating the very customers whose loyalty the company relies on to survive.
I believe the solution is to take a page from #Disney's book and focus more on licensing. Sure Disney made billions of people paying to see it's lovable princesses, and other cartoon characters, not to mention the Star Wars franchise. But they've many more billions off the licensing of these characters.
Netflix has come up with some really top tier original content for both adults and kids. Not to mention brought over some cancelled shows which already had cult followings. They should leverage these character with licensing opportunities and bring a much needed additional revenue stream. $NFLX $DIS
Netflix’s Price Increase Signals Original Content Isn’t Enough
Not just persevere, but excel and obliterate the competition. Don't forget that many said #Netflix's days were finished when #Walmart, #Blockbuster and others tried to compete with them. Which of those other companies are still standing? Only one! $NFLX
Netflix’s Price Increase Signals Original Content Isn’t Enough
I think #Netflix is the clear leader in the streaming space and even the major competitors like the #Amazon powerhouse with it's edge in compatible hardware or extra benefits (like Prime shipping) or companies like #Sony with it's vast libraries of videos can't compete.
Netflix has the largest offering, the most critically acclaimed original content, the best tech and the most loyal fanbase. While the companies financials could be better, the fact that they've been able to take it's first mover advantage and persevere despite the intense competition shouldn't be so quickly dismissed.
Unlike most products they can continue to raise prices and I and many others would continue to pay. $NFLX $AMZN $SNE
Netflix’s Price Increase Signals Original Content Isn’t Enough
I don't think that's so clear cut. #Netflix hasn't raised it's prices much and is still a bargain for what it offers. Netflix is still much cheaper than #Hulu which charges $11.99 per month (for no commercials, like Netflix). On the contrary, I think that this increase is meant to fuel a greater investment in it's original content since this is one area where others can't compete (at least not without investing billions themselves). And even then, loyal fans will stay with Netflix for it's original shows which they have come to love. $NFLX.
Netflix’s Price Increase Signals Original Content Isn’t Enough
"As we have written for some time, investors will not tolerate huge cash flow losses forever." Sadly #Netflix and others have so far proven this thesis incorrect. I do however agree that they should not. The simple fact is, although the stock price rises, their model is becoming more unsustainable, not less. $NFLX
Should Cable TV Fear AT&T DirecTV Now?
I think cable should be more concerned with streaming services like #Netflix or #Amazon. But yes, I think #DirecTV could hurt them as well. $NFLX $AMZN
Screens Outstrip Content
I learned this about #4Ktvs the hard way. Was in the market for a new TV and was blown away by the 4K demos in store. Got the TV home and found I literally had no 4K media to watch. Figured I'd buy some DVDS.... nope, no 4K dvds/dvd players are out yet.
Well, at least I could upgrade #Netflix to get at least SOME content in 4K. Oh wait, that costs more than the standards $NFLX plan. Oh well, took the plunge only to see no difference. Contacted Netflix to find out why and they said I'd need to upgrade my HDMI cable and upgrade my cable internet plan to get more bandwidth. What a waste.
Amazon Says Prime Video Now Available In Over 200 Countries Around The World
It was my understanding that with #Netflix's global expansion, the majority of their offerings were not available outside the US. I wonder if that's the same with #Amazon or not.
Amazon Says Prime Video Now Available In Over 200 Countries Around The World
#Amazon is definitely going to give #Netflix a run for its money with this expansion!! $NFLX $AMZN
Amazon Says Prime Video Now Available In Over 200 Countries Around The World
Interesting that it seems to be a stand alone service from #Amazon in countries where they don't offer #AmazonPrime. But how much will they charge after the introductory offer expires? I wonder... Either way, it could be some unwanted competition for #NEtflix which has invested heavily in this area. $AMZN $NFLX
Will Netflix Ever Disappoint Investors?
Loved "Stranger Things" on #Netflix. Original content can certainly lead to new subscribers. I have many friends who joined Netflix just to watch House of Cards, or HBO to watch Game of Thrones.
5 Stocks to Buy as Unemployment Hits 9-Year Low
I agree that at some point the growth model stall, but we are a long time away from that. #Netflix is making massive inroads in the global market, but are only just scratching the surface of it's potential. And as highspeed mobile internet continues to expand in underdeveloped regions, the market for Netflix will only continue to grow.
Entire generations all over the world are poised to enter a lifetime of binge watching, and non-productivity. Bad for the world, but great for $NFLX.
Will Netflix Ever Disappoint Investors?
Interesting read but I have to take issue with your comment that "For creating new content, there are no barriers to entry." How can you say that? Creating a quality TV program or movie can take hundreds of millions of dollars. Especially if it involves a cast with star power. #Netflix and #Amazon definitely excel at this. Personally I think #Hulu and #YouTube fall short. $NFLX $AMZN
5 Stocks to Buy as Unemployment Hits 9-Year Low
If going long, I am a small cap value guy. I think the larger markets are overvalued and due for a 35% correction. Timing.... Who knows?!
I've had people ask me about #Netflix recently. I don't like the valuation at all. PE of 322. What?! Forward PE of 125. What?!
I don't care if $NFLX is creating wonderful new programming. At some point the growth model stalls. There's not enough demand for that. My kids spend all day watching YouTube. People make content for free every day.