Quote:
Originally Posted by Horizon
And are you suggesting that Netflix is like Deliveroo? What is your view?
Takeaways tend to be expensive, so if there is a economic downturn, yes this could hurt Deliveroo. But Netflix is cheaper and besides, if people can't afford to go out, have takeaways etc, I suggest to you that this would be good for Netflix and the other streamers. People have got to have some pleasures in life.
The other point I'd make is that regardless of the virus and its after effects, Netflix has created a systemic change in the media industry forever. Which as I keep saying, is why Murdoch sold out, as he knew he could not compete in the new streaming age with gigantic tech giants with deep pockets.
|
My point - not specific to Netflix but the wider streaming industry - was that the hype and market valuations have no link to the underlying business models. The article goes on to say this is a staple of the technology sector just try not to be the last guy holding the shares when it all goes under.
Quote:
|
When every customer loses you money, it’s not good news for your business if customer numbers stay solid or even increase, unless there’s someone else who believes that’s a good thing. What these companies rely on is telling a story – largely to people who will invest in them. Their narrative is they’re “disrupting” existing industries, will build huge market share and customer bases, and thus can’t help but eventually become hugely profitable – just not yet.
|
“Deep pockets” are no substitute for an underlying profitable business model.
I do agree with you that being a cheap affordable luxury means the virus doesn’t present a risk to streaming services in itself. Pay-tv (the market that streaming is part of) wasn’t hit in 2008.