Archive for the ‘Netflix’ Category

Memo to Netflix: Password-sharing is a symptom, not the disease.

April 28, 2022

Like cable, you’ve got lots of listings, but relatively few that are worth paying for.
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Last week, Netflix announced that it, in its last quarter, lost 200,000 subscribers when analysts were expecting a gain of more than 2.5 million users.

Whoa, Nellie.

That’s a “statistically significant” miss for sure … not a smaller than expected gain, a loss!

And, the company gloomed that it will lose another 2 million in its current quarter.

Understandably, “the market” was “disappointed” and immediately shaved a cool 1/3 off the Netflix market cap.

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Hate to pile on, but that’s on top off a prior (and bigger) 1/3 drop earlier in the year.

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So, what’s the problem?

NFLX management chalks it up to to password-sharing … to many freeloaders who aren’t paying for the value that they’re getting from the NFLX “product”.

I beg to differ.

I think NFLX has an inflated view of how much continuing value it delivers … and, even if that’s not true, it’s value is eroding by the day.

Let me explain.

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Is Mickey positioned to walk all over Netflix?

May 28, 2019

Is the “disrupter” now going to get disrupted?

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Interesting opinion piece by investor Stephen McBride in Forbes and channeled through the Daily Wire

With 150 million subscribers, Netflix is the undisputed king of streaming … at least for now.

Netflix understands that content is the name of the game … and has invested more than $12 billion in orignal content … and gets high marks from viewers for having the best original content.

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But Netflix has largely financed the new content development with debt … now owing creditors more than  $10 billion … and faces a formidable threat from cash-rich Amazon and recently announced streaming services from  Disney…

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Trax: How Netflix knows what to recommend …

August 15, 2013

Consider this …

In March, Netflix shipped its 4 billionth DVD.

In the first quarter of 2013 alone, it streamed more than 4 billion hours.

The company estimates that 75 percent of viewer activity is driven by the company’s algorithmic recommendation.

 

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Here’s some skinny on how Netflix works the numbers  …

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