While Netflix scale and operating efficiency is laudable, esp. now compared to other streamers. They are nearing the top of their pricing power. I don't think anyone would be willing to pay over $20 for the service except for the top percentile of the wealthiest households. International has competition, and much much lower pricing power. The company is now entering a maturing stage, without a capable MOAT.

Subscribers I don't believe are as sticky as investors who bought back into the story might believe. With rising competition, there is so much more content out there, great content as well and especially with ads too. I can't think of one exciting show coming up in the next 6 months for me. Murder Mystery 2? Love is blind? Lupin and Cobra Kai are OK, but no where near the quality of competition. Whereas I see so much great content on Apple TV+, Hbo Max, even Hulu etc.

Expand full comment