Quote:
Originally Posted by Chris
I suspect it’s the dose of reality it might bring to this discussion he’s interested in, rather than Netflix performing poorly per se.
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Indeed.
I like, and subscribe to, the Netflix product. The joke that often does the rounds is who pays for Netflix vs who all uses a family member/friends account. I'm the guy that pays in my family!
I don't really think it's helpful if Netflix throws billions into content, on top of billions that they are already in debt, forcing up content costs for the wider market. The bottom line is while institutional investors all run around hoping to make hundreds of millions of dollars in the boom/bust on the share price, at the other end the subscribers are being asked to bankroll an inflated content market. Driving up subscription costs across the whole market.
A shock to the market so that it's accepted there isn't an ever increasing subscriber base and ever increasing revenues has to happen at some point. They're all competing for the same pot of money, whatever size that is over however many subscribers. Arguably the sooner it happens the better.