chrisPjelly
Member
Something something Toblerone something something don't deserve
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Netflix plans to spend $8 billion to make its library 50 percent original by 2018
- Thread starter Shard
- Start date
ClosingADoor
Member
Netflix stock is setting new highs. Nobody is worried, since investing in content they own is a good long term strategy. No license fees, no negotiations or price hikes after a few years, no regional limits. The debt stuff was some nonsense that wasn't researched well.
Biggest problem Netflix has is discoverability of the content they produce, since they don't have advertising between their shows promoting what is coming, and their apps don't really highlight it. Need to keep people watching, but judging from the still rising subscriber numbers they'll do fine.
MaKTaiL
Member
The Witcher is coming!
I was excited for that until people realized an animated studio was making it.
It's not SciFi, but Frontier is pretty fucking fantastic (and it's Canadian!).
Netflix has more than 100 million subscribers. Back of napkin math is $12 x 100,000,000 = $1,200,000,000 gross income per month, on streaming alone. That's $1.2 billion flowing in every single month.
Netflix's costs are also very front loaded. Once staff, hardware, and initial production costs are covered, every additional subscriber is majority profit. The incremental costs to support an additional customer are minimal.
Netflix also went from 50,000,000 subs three years ago, to more than 100,000,000 million this year. That is solid growth, and as others have noted, it is borne out by the stock market.
Netflix carrying $8,000,000,000 in debt is not a concern.
It is also an example of why Netflix needs to invest in shows. Netflix doesn't actually own House of Cards. It only owns the streaming rights. Netflix isn't getting any income when you buy the Blu or purchase it on VoD.
Not if Netflix is paying a large chunk of production costs (see the Netflix Original branding for the new series anywhere outside of North America).
Netflix UK = amazing if you like TV shows. If Netflix US had the same content as Netflix UK, Comcast would be out of business.
This. Netflix has variety because that's what brings in the $$$. My SO and I have different profiles. We get recommended vastly different shows. While we watch some major releases, a good portion of what we do consume on Netflix would never make it to broadcast in the US.
Netflix has replaced cable (and even broadcast) TV for us, simply because there is always new content to watch.
PopcornMegaphone
Banned
A lot a Netflix self produced content is disappointing, but I think they're learning. I suspect as time goes on the good to bad content ratio will improve.
RPGCrazied
Member
Is this why the subscription keeps going up? Its still fine right now, but if it passes $14.99 I'm out.
Falchion
Member
Yeah I've been wanting to see that one.
It will inevitably pass $14.99 at some point.
sixteen-bit
Member
RedAssedApe
Banned
i could be argued that they've been undercharging for awhile now and this is just another correction.
I was surprised when I saw that the latest adaptation of Anne of Green Gables is a Netflix Original outside of Canada, where the CBC produced it.
Valkyr Junkie
Member
GAFs favorite analyst Michael Pachter roasts this guy for not knowing Netflix doesnt own most of their original content.
https://www.cnbc.com/video/2017/10/...ntent-recodes-ed-lee-on-netflix-earnings.html
https://www.cnbc.com/video/2017/10/...ntent-recodes-ed-lee-on-netflix-earnings.html
It's not SciFi, but Frontier is pretty fucking fantastic (and it's Canadian!).
Netflix has more than 100 million subscribers. Back of napkin math is $12 x 100,000,000 = $1,200,000,000 gross income per month, on streaming alone. That's $1.2 billion flowing in every single month.
Netflix's costs are also very front loaded. Once staff, hardware, and initial production costs are covered, every additional subscriber is majority profit. The incremental costs to support an additional customer are minimal.
Netflix also went from 50,000,000 subs three years ago, to more than 100,000,000 million this year. That is solid growth, and as others have noted, it is borne out by the stock market.
Netflix carrying $8,000,000,000 in debt is not a concern.
It is also an example of why Netflix needs to invest in shows. Netflix doesn't actually own House of Cards. It only owns the streaming rights. Netflix isn't getting any income when you buy the Blu or purchase it on VoD.
Not if Netflix is paying a large chunk of production costs (see the Netflix Original branding for the new series anywhere outside of North America).
Netflix UK = amazing if you like TV shows. If Netflix US had the same content as Netflix UK, Comcast would be out of business.
This. Netflix has variety because that's what brings in the $$$. My SO and I have different profiles. We get recommended vastly different shows. While we watch some major releases, a good portion of what we do consume on Netflix would never make it to broadcast in the US.
Netflix has replaced cable (and even broadcast) TV for us, simply because there is always new content to watch.
Netflix is predicting -$2.0 to -$.2.5 billion in negative cash flow for the year. So yes their operations are generating profit but overall spending is $2+ billion negative for 2017. Netflix is also expecting to be negative cash flow for several years as the increased spending will take it's toll. Netflix is hoping the growth continues worldwide as it's slowed down quite a bit in the U.S. My guess is they'll cut back the spending after they get a decent library of original produced content even if it's older it's still good enough to pad the library.
It's not SciFi, but Frontier is pretty fucking fantastic (and it's Canadian!).
Netflix has more than 100 million subscribers. Back of napkin math is $12 x 100,000,000 = $1,200,000,000 gross income per month, on streaming alone. That's $1.2 billion flowing in every single month.
Netflix's costs are also very front loaded. Once staff, hardware, and initial production costs are covered, every additional subscriber is majority profit. The incremental costs to support an additional customer are minimal.
Netflix also went from 50,000,000 subs three years ago, to more than 100,000,000 million this year. That is solid growth, and as others have noted, it is borne out by the stock market.
Netflix carrying $8,000,000,000 in debt is not a concern.
It is also an example of why Netflix needs to invest in shows. Netflix doesn't actually own House of Cards. It only owns the streaming rights. Netflix isn't getting any income when you buy the Blu or purchase it on VoD.
Not if Netflix is paying a large chunk of production costs (see the Netflix Original branding for the new series anywhere outside of North America).
Netflix UK = amazing if you like TV shows. If Netflix US had the same content as Netflix UK, Comcast would be out of business.
This. Netflix has variety because that's what brings in the $$$. My SO and I have different profiles. We get recommended vastly different shows. While we watch some major releases, a good portion of what we do consume on Netflix would never make it to broadcast in the US.
Netflix has replaced cable (and even broadcast) TV for us, simply because there is always new content to watch.
8 billion is new debt Netflix is already carrying 21 billion in debt. Since this news hit Netflix stock is down over 5%. Id say the market agrees with me.
Also content does not mean quality. Netflix has tons of variety but its 90% garbage. People like quality writing and acting. Thats why HBO really gets it and Netflix is still struggling to make quality content.
On an investor call Monday, Netflix Chief Content Officer Ted Sarandos noted the company's progress in making hit original films.
Last quarter, Netflix released three movies that would have been "sizable successes" at movie theaters if they had been released theatrically: "Death Note," "Naked" and "To the Bone," he said.
Death Note successful for them... sequel incoming ?
Last quarter, Netflix released three movies that would have been "sizable successes" at movie theaters if they had been released theatrically: "Death Note," "Naked" and "To the Bone," he said.
Death Note successful for them... sequel incoming ?
ClosingADoor
Member
I'm sure the 5% drop after their all time high is hurting after the +56% YTD (http://finance.google.com/finance?q=NASDAQ:NFLX). All tech is dropping a bit at the moment.
I don't really get the quality argument. Have you watched tv lately? 90% in any network can be classified as garbage. You can't turn out award winning shows non stop. Of course most will be mediocre or bad. And guess what, people do watch that also. I'm sure The Ranch will not win any awards for writing and acting soon, but it doesn't have to. Just like Two And A Half Man and The Big Bang Theory doesn't have to.
HBO does not make the amount of content Netflix does. Their strategy is a few high quality shows. Netflix strategy is much wider.
And again, the 21 billion debt is nonsense. As per Netflix itself:
Basically, they counted content contracts as debt. It isn't debt, it is just costs. And costs that are spread out over time also, not just something that is a debt at this moment. And by replacing that with their own content more and more, it means they get rid of those obligations over time.
dead souls
Member
How can he quantify this in any meaningful way? There's a big difference from watching something on your couch and actually having to go to a movie theater.
This. Contacted costs are not debt, unless they come due and are not paid.
So many people in this thread don't understand basic economics.
Netflix has incredibly detailed data analytics. The company doesn't release numbers, but it tracks viewers, subs, etc. Netflix knows if you're a casual viewer, a dedicated viewer, or someone who only subs for a month once a year for a new season of your favorite show. Netflix knows what devices you watch on, how you watch, and also, what you stop watching midway through.
And that's just the high level stuff.
I would love to see all the data Netflix has collected, tracked, and what it does with those statistics to make decisions based around their service.
ZombieSupaStar
Member
I need to use amazon prime + 3 booster subs (Showtime, Starz etc) to equal what Netflix in my mind had back before everyone got their own streaming services.
MisterHero
Super Member
I'm in as long as Fuller House sticks around
Adam Sandler's movies are some of the most watched on Netflix so I don't think this is really the case.
Yeah you kinda need the trash as well as the non trash to appeal to different people and get a wide audience
dead souls
Member
No, I get all that, I just don't get how they can use it to extrapolate that a movie they put out would have been successful in a theatrical release. There's a lot of stuff I watch from Netflix/HBO/Showtime that I wouldn't even pay $2 to rent from RedBox let alone go to a movie theater to see.
ClosingADoor
Member
They probably compare the stats they have to those of movies on the service that did get theater releases, so they can make an educated guess about what it would have done in theaters. Never really going to know how accurate it would be of course.
Netflix released it's official Q3 earnings today.
$2.99 billion in revenue, up 30% YoY.
Stock hit an all-time high on the news.
YOU might not like what Netflix is doing, but the public and the stock market are voting with their $$$. Smart debt management is helping the company grow.
Forsaken82
Member
It's the awful movies that keep me paying for Netflix. Well actually its the binge worthy TV shows, but then having dumb genre flicks to watch afterwards is a nice bonus to keeping the subscription
Also, I feel their movies have been fairly decent as of late. I found enjoyment in ARQ and Spectral, I thought Gerald's Game was fantastic, and I am pretty excited for 1922 and Bright, but if all you ever watched was Adam Sandler films, than yeah, I can understand your complaint.