Just to come back to this from last week:
Quote:
Originally Posted by jfman
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.
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Although I can not and nether can anyone else, say which streamers will be successful in the long term, do you not accept that the film/tv industry is going through a systemic change and it will likley be streamers which will be the winners overall, rather than traditional tv channels and cinemas. That is not hype, but a massive shift in how the media industry does business.
Streamers are/will be the business model.
Quote:
Originally Posted by jfman
“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.
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On profits, if the streamers emulate Malone's way of doing business, they will always be in debt and never in profit, something we've spoken about before. And no, I'm not thrilled with that way of doing business, but I suppose not paying taxes is very "profitable".