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.
Thanks for the comment. Apple is definitely taking content creation more seriously. I do think that Netflix’s moat has been underestimated for 20 years. It’s not easy to make money by spending so much on content and Netflix does have a comparative advantage IMO. But I agree, pricing power is not infinite. That’s why we’ve seen them turn to CTV.
Couldn't agree more. Netflix has definitely been on point when it comes to understanding what people want to watch these days. But it can burn a hole in your pocket. However there are even pricier alternatives out there. I've seen a Netflix downloader costing 40 euros.(you can see it by urself: https://streamfab.de/netflix-downloader.htm. )It's like only the wealthy European families could even consider affording that.
I guess you were right on this one. Competition was hiding more losses than it seemed. And becoming online cable of TV vs quality has become a good strategic move. Can't see much disrupting Netflix now even if valuation goes down 50%.
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.
Thanks for the comment. Apple is definitely taking content creation more seriously. I do think that Netflix’s moat has been underestimated for 20 years. It’s not easy to make money by spending so much on content and Netflix does have a comparative advantage IMO. But I agree, pricing power is not infinite. That’s why we’ve seen them turn to CTV.
Couldn't agree more. Netflix has definitely been on point when it comes to understanding what people want to watch these days. But it can burn a hole in your pocket. However there are even pricier alternatives out there. I've seen a Netflix downloader costing 40 euros.(you can see it by urself: https://streamfab.de/netflix-downloader.htm. )It's like only the wealthy European families could even consider affording that.
I guess you were right on this one. Competition was hiding more losses than it seemed. And becoming online cable of TV vs quality has become a good strategic move. Can't see much disrupting Netflix now even if valuation goes down 50%.
:)