When there is sanity in spending, Netflix has a very scalable business (zero marginal costs) with immense FCF generation capability. However, the unfortunate thing that happened a few years ago was all their rivals started to treat themselves as rivals to Netflix and most of them are currently loss leaders to compliment their other businesses (Disney+ to the entire Disney ecosystem. AmazonTV to Prime membership)
Netflix returns to growth, saying the worst of slowdown is over
The streaming leader added 2.41 million customers in the third quarter, exceeding internal forecasts as well as expectations on Wall Street. Netflix grew in all regions of the world and said on Tuesday (Oct 18) it expects to sign up another 4.5 million globally this period.
Management plans to increase sales by introducing an advertising-supported version of the streaming service in November and charging for password sharing next year. Customers willing to watch Netflix with five minutes of advertising per hour can pay US$7 a month, less than half of the cost of the most popular plan.
https://www.businesstimes.com.sg/consume...wn-is-over
Netflix returns to growth, saying the worst of slowdown is over
The streaming leader added 2.41 million customers in the third quarter, exceeding internal forecasts as well as expectations on Wall Street. Netflix grew in all regions of the world and said on Tuesday (Oct 18) it expects to sign up another 4.5 million globally this period.
Management plans to increase sales by introducing an advertising-supported version of the streaming service in November and charging for password sharing next year. Customers willing to watch Netflix with five minutes of advertising per hour can pay US$7 a month, less than half of the cost of the most popular plan.
https://www.businesstimes.com.sg/consume...wn-is-over