Actually Netflix is 20 billion in accumulative debt (15.7bil in streaming content obligations and 4.8 in total gross debt). Their long term plan im guessing is to seize the market so in time they can cut back on the amount of original content they produce yet still have a massive selection that will span for years, and with time they will start making money back.
The stock market and private equity/venture capital investor frenzy to find the next unicorn and next fad is what makes Netflix so powerful right now. Netflix have an endless line of credit and equity financing which is an indictment of the modern American and Western economy. Growth is historically slow in the West with an ageing population and a dysfunctional economic system which is why the stock market goes nuts for Netflix. This could end badly like Theranos. Certainly, Netflix has massive tangible value in its hundreds of millions of loyal subscribers but to rate it more valuable than Disney is just crazy. They are heavily dependent on streaming alone. Meanwhile the rate at which they are spending on new entertainment is crazy. Demand will never catch up to that supply so they will keep making major losses and unlikely to justify all the capital invested for many many years to come if ever. Netflix might never be able to turn a profit the rate it is going at. It's only hope would be to break into the developing world markets and establish a strong similarly loyal customer base because that is where the demographics and disposable income will be in the many decades to come in World History. But China and other developing economy protectionist governments will not allow foreign competitors to dominate their markets. China will promote its own local champion equivalent of Netflix as part of its strategy. This is why Facebook and Amazon in their corresponding markets have to grovel to Chinese censorship laws to be given a crumb of the Chinese market. Netflix will be hard pressed to break into China significantly or the other rising Tiger economies of the next century because of government protectionism. The whole Western economic model is in a huge bubble and Wall Street in particular will feel the greatest impact when the bubble pops.
Netflix had a revenue of 11bn last year. It is making money not losing it. Of course it is sustainable
If anything the non subscription model of traditional media is less sustainable and that isn't going away anytime soon
Music, tv and film already have subscription service. In near future video games will work the same way
Actually Netflix is 20 billion in accumulative debt (15.7bil in streaming content obligations and 4.8 in total gross debt). Their long term plan im guessing is to seize the market so in time they can cut back on the amount of original content they produce yet still have a massive selection that will span for years, and with time they will start making money back.
The stock market and private equity/venture capital investor frenzy to find the next unicorn and next fad is what makes Netflix so powerful right now. Netflix have an endless line of credit and equity financing which is an indictment of the modern American and Western economy. Growth is historically slow in the West with an ageing population and a dysfunctional economic system which is why the stock market goes nuts for Netflix. This could end badly like Theranos. Certainly, Netflix has massive tangible value in its hundreds of millions of loyal subscribers but to rate it more valuable than Disney is just crazy. They are heavily dependent on streaming alone. Meanwhile the rate at which they are spending on new entertainment is crazy. Demand will never catch up to that supply so they will keep making major losses and unlikely to justify all the capital invested for many many years to come if ever. Netflix might never be able to turn a profit the rate it is going at. It's only hope would be to break into the developing world markets and establish a strong similarly loyal customer base because that is where the demographics and disposable income will be in the many decades to come in World History. But China and other developing economy protectionist governments will not allow foreign competitors to dominate their markets. China will promote its own local champion equivalent of Netflix as part of its strategy. This is why Facebook and Amazon in their corresponding markets have to grovel to Chinese censorship laws to be given a crumb of the Chinese market. Netflix will be hard pressed to break into China significantly or the other rising Tiger economies of the next century because of government protectionism. The whole Western economic model is in a huge bubble and Wall Street in particular will feel the greatest impact when the bubble pops.
Netflix is like a fridge full of food you don't like.
Netflix put that lying piece of sh!t Susan Rice on their board of directors. I won't be giving those libtards my money any more.