Comments
faryl
7/25/2016 6:39:14 PM
User Rank Platinum
Re: Shared accounts
I wonder how many of the users who do that would actually pay for a subscription otherwise.
There were articles floating around a few years back talking about HBOs views on account sharing & people pirating Game of Thrones in particular. I don't remember how it played into their business strategy, but I remember that HBO wasn't overly concerned about it.
(I'm pretty sure it limits the amount of devices that can access Netflix at once from each account, which probably helps keep the amount of account/password-sharing to a controllable amount)
dcawrey
7/25/2016 3:13:02 PM
User Rank Platinum
Re: The King Doesn't Want to Become the President
I know Netflix is expected to gain significant growth via overseas markets. I would argue the only way it's going to succeed is via aggregation. It's too hard for a company like Netflix to know right away what shows certain markets will like – it will need data first.
faryl
7/24/2016 9:44:53 PM
User Rank Platinum
Re: The King Doesn't Want to Become the President
I wonder how much of the production cost is covered by the production company and how the value of Netflix's audience plays into it all.
(I have no idea how that all works!)
elizabethv
7/22/2016 9:50:01 AM
User Rank Platinum
Re: Net Flix Business model
@vnewman - you're right, they are still bringing in a pretty penny. At some point they had to expect growth would slow and potentially even stagnate. I'm sure there are a few smaller OTT services that would love to be in the position Netflix is in right now.
Adi
7/20/2016 12:53:40 PM
User Rank Author
Re: Net Flix Business model
@vnewman - Absolutely; net income grew and EPS were well above expectations. They are doing a fantastic job controlling costs, and seem genuilnely optimistic about ramping up profitability sharply next year. But I think top line revenue was below analyst expectations. That may have contributed to the share price falling, though I think investors were more concerned with the subscriber growth numbers. That net adds number is seen as the engine for future growth and if investors believe it is starting to lose steam...
Ariella
7/20/2016 12:35:09 PM
User Rank Author
Re: Net Flix Business model
@vnewman excellent point! A lot of companies boast a great deal of growth when they're starting out but have very little revenue. A business also needs money to come in to sustain itself and, of course, make money for the shareholders.
vnewman
7/20/2016 11:56:04 AM
User Rank Platinum
Re: Net Flix Business model
Growth may have slowed, but growth isn't everything - revenue is still through the roof - they eared 41M last quarter which is a 57% increase from the same quarter last year.
clrmoney
7/20/2016 11:30:15 AM
User Rank Platinum
Net Flix Business model
I don't thing they need a new business model because everying seems to be going great to me ith over a million subscribers. Maybe they are trying something different that will be better for them.
elizabethv
7/20/2016 7:42:18 AM
User Rank Platinum
Re: The King Doesn't Want to Become the President
@afwriter - perhaps their business model isn't at all sustainable, and they know it but continue on anyway. Sure, that doesn't make much sense in the long run, but who's to say they don't have some kind of end game strategy in mind. You are right, all of their original programming costs money, and at some point, their income was going to hit a plateau. Unlike Amazon, who has the abilty to fray costs with income from other sources, Netflix doesn't haven't that ability. What would they offer with their movies? Delivery popcorn?
elizabethv
7/20/2016 7:35:07 AM
User Rank Platinum
Is it good to be king?
I'm not sure that Netflix hasn't run out of runway, but I am sure they still have some fight in them. There was always going to be an end, there always is. Though it seems to have happened pretty quickly. Other's caught on to what Netflix was doing, and wanted their share of the success. They will undoubtedly see some increase with their rollout of all the Disney Movies in September. Heck, I'm excited about that. No matter what, Netflix will always hold a tight grasp in the OTT game, even if they aren't always the king.
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