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Netflix’s bad habits have caught up with it

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Re: Netflix’s bad habits have caught up with it

#121

Post by tomnipotent »

dragontamer wrote: post #11

I was expecting to see some discussion over Netflix's depreciation models, which is (apparently) over 5 years, 20% per year. While Disney (and other producers) do something like 90% depreciation over the first year, the famous "Hollywood accounting" that gets a lot of criticism. But "Hollywood accounting" might be closer to the truth than Netflix's model. 20% of the movie "Bright" (released in 2017, the Will Smith +…

> over Netflix's depreciation models

Amortization - Netflix treats content as assets, and recognizes on average 90% of amortized expenses in the four years after first broadcast. Net revenue looks better, but cash flow and balance sheets are still going to reflect outlays, which can often occur before first broadcast.

The "Hollywood accounting" recognizes 90% of expenses in the first year to artificially reduce net profit, which in turn means less taxes and royalties during the year when most revenue for content is recognized. Netflix can make a case that content continues to make an impact on subscription revenue over a larger window of time, and so expenses should equally be recognized in relation to the income statement.

Netflix also regularly updates their amortization schedule as trends shift.

Re: Netflix’s bad habits have caught up with it

#122

Post by dccoolgai »

orzig wrote: post #44
pvarangot wrote: post #33

Earlier quoted context omitted.

I would add that "a formula" doesn't mean it's bad. I regularly drank beer since like when I was 14 until when I was like 35 or something? I do it way less now but still sometimes drink beer. My favorite style changes. Sometime I just drink a new one because like dopamine hits and I get excited about the potential novelty and discovery. But it's beer, and I think there's nothing wrong with it. From bud light to like…

I can't match the near-unhinged brilliance of the above comment, but I'll add that many meditation traditions encourage serenity by inspecting the details of the ordinary instead of a constant grasping for new stimulation.

Agreed. Every once in a while I read a comment on here that makes me wish I could read a whole book in its style.

Re: Netflix’s bad habits have caught up with it

#123

Post by Ericson2314 »

pvarangot wrote: post #33
jmyeet wrote: post #16

So the problem with media conglomerates (including big studios) is they want predictable returns. More specifically, they want a formula. Let me introduce you to Save the Cat [1]. This book has become so influential that you can read this book and then watch pretty much any movie and you'll be able to tick off everything in the movie to this structure. It's why studios love sequels and franchises. They have a built-i…

I would add that "a formula" doesn't mean it's bad. I regularly drank beer since like when I was 14 until when I was like 35 or something? I do it way less now but still sometimes drink beer. My favorite style changes. Sometime I just drink a new one because like dopamine hits and I get excited about the potential novelty and discovery. But it's beer, and I think there's nothing wrong with it. From bud light to like…

To vaguely respond with an analogy, when I don't care what I'm drinking I don't drink Budweiser, I drink water.

It's good to not be insufferable in constantly policing oneself to follow the trend. sure. But watching Marvel movies isn't the only alternative.

Re: Netflix’s bad habits have caught up with it

#124

Post by zucker42 »

The problem with the article is it assumes that Netflix's drop in stock price is due to mistakes the company has made. In my view, the reason Netflix has been less successful than shareholders expected has more to do with what its competitors are doing well rather than what its doing poorly. Netflix's CEO once famously said that Netflix had to become HBO before HBO could become Netflix. While Netflix has made steps to become a major content producer, the nature of copyright law means that they are simply starting from a disadvantage. Now that the old Hollywood juggernauts have launched their own streaming services, it's a lot harder for Netflix to grow.

Re: Netflix’s bad habits have caught up with it

#125

Post by Ericson2314 »

pvarangot wrote: post #78
orzig wrote: post #44

Earlier quoted context omitted.

I can't match the near-unhinged brilliance of the above comment, but I'll add that many meditation traditions encourage serenity by inspecting the details of the ordinary instead of a constant grasping for new stimulation.

It's also of note that no meditation tradition drinks sours.

There's a lot of monastic traditions of fermentated foods; I would not be so sure.

Re: Netflix’s bad habits have caught up with it

#126

Post by lupire »

dhzhzjsbevs wrote: post #101
ramraj07 wrote: post #83

Earlier quoted context omitted.

While it is a valid point, Id argue that Netflix could have survived this - they had billions of dollars to create original content, and then they did create it, but some how screwed it all up. There’s at best 1 or 2 good show and no good movie Netflix has made in years. And anything half decent they cancel mercilessly without giving it a chance. This is not just in the US. The comparison of original content quality…

Quoted post unavailable.

No post body was provided.

Re: Netflix’s bad habits have caught up with it

#127

Post by dragontamer »

tomnipotent wrote: post #121
dragontamer wrote: post #11

I was expecting to see some discussion over Netflix's depreciation models, which is (apparently) over 5 years, 20% per year. While Disney (and other producers) do something like 90% depreciation over the first year, the famous "Hollywood accounting" that gets a lot of criticism. But "Hollywood accounting" might be closer to the truth than Netflix's model. 20% of the movie "Bright" (released in 2017, the Will Smith +…

> over Netflix's depreciation models Amortization - Netflix treats content as assets, and recognizes on average 90% of amortized expenses in the four years after first broadcast. Net revenue looks better, but cash flow and balance sheets are still going to reflect outlays, which can often occur before first broadcast. The "Hollywood accounting" recognizes 90% of expenses in the first year to artificially reduce net p…

> Netflix can make a case that content continues to make an impact on subscription revenue over a larger window of time, and so expenses should equally be recognized in relation to the income statement.

How many people are getting Netflix subscriptions to watch Bright (2017 Will Smith+Orc movie) this year?

Or from a Disney perspective, how many people are getting Disney+ to watch Coco (2017 Day of the Dead 3d cartoon)?

Re: Netflix’s bad habits have caught up with it

#129

Post by skmurphy »

smegger001 wrote: post #49
thrill wrote: post #2

The quoted "competing exec" is 100% wrong when he says Netflix is making a mistake ending shows after three seasons. Shows need to be pitched and run for three seasons max, period. Everyone has a life other than the show that's "hot" for the moment, from cast to writers to the source of money - the viewers. Shows that get dragged out inevitably suck. And yeah, go to weekly releases.

Almost all the shows i watch over and over and again are ones with 7+ seasons, 90's star trek (tng ds9 voy) all 7 seasons, M A S*H 12 seasons, Frasier 11 season, Scrubs 8 season (I skip season 9 and refuse to acknowledge its existance), Red Dwarf 8 season (+ more after the revival decades later), X-Files 11 seasons, How I Met Your Mother 9 seasons, Freinds 10 seasons, Stargate SG1 10 seasons, three seasons is to litt…

Some other ones I watch again from time to time: Big Bang Theory, NYPD Blue, Supernatural, Cheers, ER, Law & Order, Blue Bloods, Waltons, Parenthood, Little House on the Prairie, Cosby Show, West Wing, MaGyver, Seinfeld, LoveJoy, Rumpole of the Bailey
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