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Originally Posted by muppetman11
As quite a few of us have been saying for a long while , just wait until the competition hots up even further and more and more third party content gets removed.
The other problem is how do you combat it , if you spend lots more on original content the subscriber is then handed even larger increases in subscription costs leading to higher churn.
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Indeed, as I’ve said before there’s nothing new about streaming as such - it’s still TV delivered by a different method. The basic economic principles apply to streaming as they do to traditional platforms. Content is king and established media companies could have decades of back catalogue available to beef up their offerings for minimal expenditure (royalties).
Netflix need to establish a back catalogue, service $20bn debt and still competitively price their product. That’s a fundamentally broken model by itself.
The value is in the subscriber base and the potential tax efficiencies around the debt to a bigger player in the field. I’d expect Netflix to sail around uncontroversially until swallowed up - I doubt the Premier League can expect a “blow Sky out the water” bid in 2021 from Netflix.