Quote:
Originally Posted by DNSB
The last time I looked at NetFlix's financials, for 2019, their gross revenue was shown as ~$29 billion (North American billion so 9 zeros) with a gross profit of ~$7.7 billion and a net income of ~1.9 billion. You can check at Netflix Financial Statements 2005-2020 | NFLX for more information.
I will have to agree that going forward, NetFlix may be in for trouble considering the number of well-funded and stocked with content competitors joining the market. With the continuing fragmentation in the streaming market, most consumers are going to be looking at using 4 or more streaming services to obtain the same content they are currently enjoying. |
Churning is the enemy of streaming.
Sign in for a month, binge "the good stuff", suspend and activate another service.h
Netflix has it factored in. The newcomers are aware of the challenge but are more vulnerable. Fox example:
THE MANDALORIAN did great for Disney. While it ran.
Won't be back until the fall, though. In the meantime people only sighed up for it (me!) go elsewhere. Other big ticket originals (Marvel) aren't due until 2021.
There's a reason Netflix staggers its high profile exclusives so there is something interesting every month for most every one.
Variety had a good piece on Netflix's position a couple months back.
https://variety.com/2020/digital/new...on-1203469237/
A company valued at a hundred billion, with $14.2B in long term debt, spending $11B on content per year (licensed and owned combined), is a pretty healthy company. They are growing is a growing market (streaming) and have zero exposure to the shrinking one (live TV).
In contrast, ViacomCBS is deep into live TV, is vakued at a fraction of Netflix, and has bigger expenses coming. (Plus the movie division hasn't been too hot lately.)
Hence it's bye-bye S&S.
If they find a taker.