Quote:
Originally Posted by muppetman11
Disney doesn't need to have as many subscribers to have an impact on Netflix with so many options around the corner what happens if Netflix growth stalls ?
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Depends where that growth stalls, if it does at all.
If its in the States, they probably will be unable to generate anymore new subscribers anyway, so not a problem. If its internationally the growth stalls, then yes, that's a major problem and I'd expect they'd go belly up pretty quickly as investors rush for the exit door.
I'm expecting international growth, year-on-year for the next three years, by which time, some of their revenues need to go into paying some debt.
Netflix's response about Disney is they will have enough of their content to cushion the loss of Disney's content and they say they welcome the competition, as that grows the overall streaming market for everyone. THat's their line. I think they have three years before Disney will impact their business and they need to be big enough to cushion that impact.
I see Netflix as Sky was at the beginning. If they can grow big enough quickly, they will remain top dog. Comcast and others have already said that they intend to continue to licence some of their content to other companies, so that's a major plus point for Netflix. Without other Hollywood material, I'd be far more nervous about Netflix's prospects.
Depending on price, there's room for probably 4-6 global streamers here, it's just a case of how the cake is sliced and by whom.
---------- Post added at 16:41 ---------- Previous post was at 16:38 ----------
Quote:
Originally Posted by denphone
Disney's huge back catalogue and their more recent content is something Netflix cannot compete with.
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Netflix has 139 million customers. Disney has zero for its global streaming app, because it doesn't exist yet.
It's Disney who has to compete and they will, I've no doubt about that all. (I own Disney shares too.)
---------- Post added at 16:47 ---------- Previous post was at 16:41 ----------
Quote:
Originally Posted by OLD BOY
In time, Netflix will presumably give rights to show their older original content and bolster their income that way.
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I hope not! Kinda destroys their business model if they do that.
The content they make now, in theory, should still be making them money for years to come. If they start licence it to others, it becomes a complete mess. However, I rule nothing out.
