Comments
afwriter
7/19/2016 12:50:58 PM
User Rank Platinum
The King Doesn't Want to Become the President
Netflix is too big to want to partner with other OTT providers and have to comply with outside decisions. I often times wonder how they can afford to continue to pump out so much original programming when their revenue stream seems fairly static. I think if something doesn't change in the future they may have a tough time staying on top, but for now their business model seems to be working just fine for them.
Shared accounts
I wonder if the ability to share a Netflix account has changed their subscribership rates at all. Do you know when they implemented the shared accounts feature where multiple users can access the same account under different aliases with content customized to their viewing habits?
dcawrey
7/19/2016 1:59:13 PM
User Rank Platinum
Re: The King Doesn't Want to Become the President
I think the market is getting pretty saturated. Add in the fact that customers all have different viewing preferences and you can see where there might be a problem. Some people are going to end up paying more for OTT services than they ever would with cable because of all the various services. I'm hoping these services will be able to figure this issue out.
mhhf1ve
7/19/2016 8:42:56 PM
User Rank Platinum
Hard to believe...
I find it hard to believe that Netflix hasn't considered its growth rate possibilities. The US market is going to be saturated at some point, so Netflix can only really add subscribers in other countries for growth... and then that growth rate will saturate and flatten out, too.
In the future, Netflix has to start acting like Disney and HBO, but that might be tricky if Netflix is both a distributor and a competitor at the same time. However, Comcast is already in the same kind of position now (although with a much stronger distribution position than Netflix).
Adi
7/20/2016 4:49:10 AM
User Rank Author
Re: The King Doesn't Want to Become the President
@afwriter - first of all, what an awesome headline to your post. Love it!
I suspect Netflix will agree with you about their business model. It's working fine for them for the most, and one quarter isn't a trend. Even I wouldn't reccomend suddenly changing their approach. I just feel now is the time to start planning further ahead, when things are generally good, and their negotiating position is strong. If they have a string of disappointing quarters and the general perception is that growth is tapped out then it will be much harder. And, as you point out, the cost of content development is always hanging over the business.
Adi
7/20/2016 4:50:22 AM
User Rank Author
Re: Shared accounts
@kelsey - If I remember correctly that was 2013-2014, so a few years ago. I think that feature has been around for a while.
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.
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?
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.
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.
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