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Netflix is now worth more than $100B

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Re: Netflix is now worth more than $100B

#51

Post by jonknee »

anilshanbhag wrote: post #19

The entire stock market feels like its in a bubble. Netflix stock gained more than 25% in the past one month. Their free cash flow (FCF) has been negative every single quarter and will be for many quarters to come. Stocks trade based on discounted cash flow(DCF). Netflix however produces no material return for investors and still majority of the analysts keep putting higher and higher price targets, its like they are…

> It's as if there is this new way of valuing companies that is not based on DCF.

Growth. Netflix is after a giant global market and investors would rather growth and investing in new content than a dividend. Yes, the stock has been on a tear, but they've also grown subscribers 25% YoY while also raising their prices. That's an impressive feat for a company already as large as Netflix.

Re: Netflix is now worth more than $100B

#52

Post by jonknee »

joering2 wrote: post #50

How do they make money?? I mean - seriously? And how will they stand up now that NN is gone and any company/website using much more traffic will be force to pay more? Please help me with the math -- at any given day, me, my wife and 2 kids are streaming netflix on multiple devices in HD; most likely pulling tens of gigabytes of data per day. How is that all covered under $10.99 per month?? and on the top - they make…

They stage their content directly with ISPs which it makes it cheaper and faster for everyone.

https://media.netflix.com/en/company-blog/how-netflix-works-...

Re: Netflix is now worth more than $100B

#53

Post by darioush »

dvt wrote: post #24
Spivak wrote: post #5

Earlier quoted context omitted.

It's really a boom and bust. As Netflix's 3rd party library continue to be siphoned off more people will turn to piracy because they're not going to subscribe to n different services.

N different services still come out cheaper than cable. I pay for Netflix, Hulu, and Amazon Prime (which comes with Video) so let's say ~ $30 a month. Compared to Cox Cable, it's not even close -- $30 is Cox' entry level cable offering (and I can't share it with my family, nor watch shows at my own leisure). My bet is that there's plenty of cash still left. Until cable companies wise up (which is probably never), Net…

until each of these services hike up their prices and more of them spawn up.

Re: Netflix is now worth more than $100B

#54

Post by spyspy »

joering2 wrote: post #50

How do they make money?? I mean - seriously? And how will they stand up now that NN is gone and any company/website using much more traffic will be force to pay more? Please help me with the math -- at any given day, me, my wife and 2 kids are streaming netflix on multiple devices in HD; most likely pulling tens of gigabytes of data per day. How is that all covered under $10.99 per month?? and on the top - they make…

CDNs will reduce bandwidth costs per user to essentially nothing. Content creation is the lion's share of their costs.

Re: Netflix is now worth more than $100B

#55

Post by skinnymuch »

tajen wrote: post #26
65934 wrote: post #17

Earlier quoted context omitted.

I don't think these services will affect Torrents in a significant way. I know people who have Amazon prime,yet torrent some shows because they are censored heavily in my country. Also, nflx doesn't offer some movies I want In my country, so I use torrents and haven't had any noticeable problem regarding seeds.

In France Netflix acts as a limited 1-season preview to tease me into torrenting the full series. House of Cards only had season 1 when the 4th was out in the USA.

That’s when Netflix was starting out, no? Do you get both seasons of Stranger Things for example? Initially they selling rights to shows much more than I think they do now.

Re: Netflix is now worth more than $100B

#56

Post by dasil003 »

nimos wrote: post #47
dasil003 wrote: post #27

Earlier quoted context omitted.

Are more people going to subscribe to Netflix because of this? Will they be distracted from the core business? Building a streaming video service is very different from building games of any sort, do they want to dilute their talent by going out and hiring for this? Sorry but I just don't see how this in any makes sense other than, "hey Netflix is doing really well, why don't they pull a Google and start throwing spa…

Do they ever actually hire people directly to make any of their content? I assumed it was all contracted out to production companies, I know it is for some shows. They could do the same thing for games just acting like a distributor. I think it's more likely to keep people subscribed then generate new subscriptions. No one person is going to like all the content they make. Personally I'd really enjoy having some fun…

How do they distribute the games?

Re: Netflix is now worth more than $100B

#57

Post by cm2187 »

lobster_johnson wrote: post #44
cm2187 wrote: post #33

Earlier quoted context omitted.

That’s n different services just to get a decent coverage of recent releases. As for the back catalogue, I haven’t seen anything that is even close to decent.

I supplement the big ones with FilmStruck (has a subset of the Criterion Collection), MUBI and Fandor. Together they have a decent collection of "older" (pre-2010s) films.

I don't know for the other twos but Mubi doesn't have much of a collection. They have a rolling 30 titles chosen by them. It's interesting if you want to discover new movies (though heavily dependent on their taste being aligned to yours), but not so much if you pull the filmography of Gene Hackman on imdb and want to watch the movies you haven't seen already.

[edit] actually none of the other two you mentioned is available in the UK...

Re: Netflix is now worth more than $100B

#59

Post by paulcole »

samfisher83 wrote: post #37
anilshanbhag wrote: post #19

The entire stock market feels like its in a bubble. Netflix stock gained more than 25% in the past one month. Their free cash flow (FCF) has been negative every single quarter and will be for many quarters to come. Stocks trade based on discounted cash flow(DCF). Netflix however produces no material return for investors and still majority of the analysts keep putting higher and higher price targets, its like they are…

I don't know why you are being downvoted. At some point you have to generate cash to justify your valuation. However if you look at amazon they have never generated cash relative to their valuation and its been like 20 something years. It has returned 10x in the last 10 years so I don't think their investors are complaining. If you look at google, facebook, and apple they are generating cash that would justify their…

> if you look at amazon they have never generated cash relative

Isn't this one of those big Amazon myths?

I thought the truth was that the income has always been there but it's the constant reinvestment that has kept profits low?

Re: Netflix is now worth more than $100B

#60

Post by skinnymuch »

nimos wrote: post #16

Surprised Netflix hasn't branched out into more content types or more dynamic content. You now have this two way communication channel seems kind of boring to not try and use it even just for mostly video content. Some of their shows run 7+ million an episode. If you look at the development costs of simple mobile games and cut out all the stuff related to IAP it seems like they could create a lot of value for custome…

Are you talking about their shows sometimes costing $7M an episode? Do you know which ones besides House of Cards and The Crown?
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