chrisPjelly
Member
Something something Toblerone something something don't deserveUh no it's just regular terrible.
Something something Toblerone something something don't deserveUh no it's just regular terrible.
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.Tbf, Apple has over $260 billion in cash reserves and $100 billion in debt. They could easily pay it off. Because of this, Investors aren't worried about their debt. You can't say the same about Netflix.
The Witcher is coming!They need a fantasy series.
The Witcher is coming!
Fund some Canadian Scifi
They are massively in debt their subscriber base doesnt cover it.
This, I think, is the end of Netflix. They are facing competition at all sides from people who make better content more consistently. Disney is releasing their own service soon, Amazon is investing heavily, HBOs service already offers better content but less variety, Hulu has the tv crowd and there is also a value perception with Netflix. They are piling on the debt at their current pricing structure. They really need to be charging around $20 a month but will people think the service is worth that when Disney and others pull out? I dont think so.
They don't have 8 billion. Their in debt. They cant do it forever.
House of Cards changed television as we knew it, that shit needs to be in the history books.
It made Netflix
Yep.
My thoughts exactly.
The golden age of Netflix being a one stop shop for movies, and TV shows was bound to have a limited shelf life, though, so this news does not surprise me at all. Everyone wants that Netflix money, and in pursuit of that we are gonna have 9 million challengers to the throne, like CBS All Access.
As it is, I'm surprised CBS has not already pulled their content, like Star Trek, from Netflix.
I don't care too much for their original content, but they are great for bringing American shows to Europe the next day. Star Trek, The Good Place, Riverdale and more. The US can have their fragmented market while Netflix does the distribution worldwide.
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.
Hulu is also in Japan actuallyProblem with Hulu is that it is a US-only service. It limits their growth potential a lot.
Okja was pretty good.
Is this why the subscription keeps going up? Its still fine right now, but if it passes $14.99 I'm out.
Guess people aren't too thrilled with this news...stock down almost 10pts last 2 days :/
Is this why the subscription keeps going up? Its still fine right now, but if it passes $14.99 I'm out.
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).
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 $$$. My SO and I have different profiles. We get recommended vastly different shows. While we watch some major releases, a good portion of what we do consume on Netflix would never make it to broadcast in the US.
Netflix has replaced cable (and even broadcast) TV for us, simply because there is always new content to watch.
It's not SciFi, but Frontier is pretty fucking fantastic (and it's Canadian!).
Netflix has more than 100 million subscribers. Back of napkin math is $12 x 100,000,000 = $1,200,000,000 gross income per month, on streaming alone. That's $1.2 billion flowing in every single month.
Netflix's costs are also very front loaded. Once staff, hardware, and initial production costs are covered, every additional subscriber is majority profit. The incremental costs to support an additional customer are minimal.
Netflix also went from 50,000,000 subs three years ago, to more than 100,000,000 million this year. That is solid growth, and as others have noted, it is borne out by the stock market.
Netflix carrying $8,000,000,000 in debt is not a concern.
It is also an example of why Netflix needs to invest in shows. Netflix doesn't actually own House of Cards. It only owns the streaming rights. Netflix isn't getting any income when you buy the Blu or purchase it on VoD.
Not if Netflix is paying a large chunk of production costs (see the Netflix Original branding for the new series anywhere outside of North America).
Netflix UK = amazing if you like TV shows. If Netflix US had the same content as Netflix UK, Comcast would be out of business.
This. Netflix has variety because that's what brings in the $$$. 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.
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.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 it's 90% garbage. People like quality writing and acting. That's why HBO really gets it and Netflix is still struggling to make quality content.
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.The L.A. Times story inaccurately calculates our debt, counting our streaming obligations (i.e. our content contracts with studios) of $15.7b as debt, which it isn't. The correct number: we have total gross debt of $4.8b vs. our equity market value of about $75b. They have since corrected the story.
More context, the $15.7b is future content expenses that roll through the income statement over time. Every broadcaster, cable network and streamer that has licensing agreements uses the same structure. As a point of reference, Disney/ESPN has $49b in similar commitments for sports contracts.
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.
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.
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.
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.
Yeah you kinda need the trash as well as the non trash to appeal to different people and get a wide audienceAdam Sandler's movies are some of the most watched on Netflix so I don't think this is really the case.
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.
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.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.
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 it's 90% garbage. People like quality writing and acting. That's why HBO really gets it and Netflix is still struggling to make quality content.
Please spend less on your awful original movies.