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Netflix's New Chapter

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Re: Netflix's New Chapter

#11

Post by zamadatix »

no_wizard wrote: post #7

I'm gonna attempt to break this down: - Netflix has 5-6 Billion USD free cash flow, and because they got what debt they do have under favorable terms, they are positioned to retain most of that free cash flow - Disney, Comcast (Peacock), CBS/Viacom and other media corporations are saddled with debt, and are all losing money on their own independent streaming businesses. Likely untenable in their shareholder model - T…

What I don't understand is how e.g. Disney+ is losing so much money. It's Disney's content, has an enormous userbase, and somehow is bleeding billions?

Re: Netflix's New Chapter

#12

Post by enumjorge »

Sort of an aside question, but the article praises Hastings ability to execute:

> To say that Hastings excelled at execution is a dramatic understatement; indeed, the speed with which the company rolled out its advertising product in 2022[...] is a testament that Hastings’ imprint on the company’s ability to execute remains.

Is there a place where one could read details on what made him so great at execution?

Re: Netflix's New Chapter

#13

Post by exhilaration »

b112 wrote: post #10
no_wizard wrote: post #7

I'm gonna attempt to break this down: - Netflix has 5-6 Billion USD free cash flow, and because they got what debt they do have under favorable terms, they are positioned to retain most of that free cash flow - Disney, Comcast (Peacock), CBS/Viacom and other media corporations are saddled with debt, and are all losing money on their own independent streaming businesses. Likely untenable in their shareholder model - T…

HBO / Netflix merger FTW?

HBO is owned by Warner Bros. Discovery, likely one of their most valuable assets. I can't see them giving it up.

Re: Netflix's New Chapter

#14

Post by no_wizard »

b112 wrote: post #10
no_wizard wrote: post #7

I'm gonna attempt to break this down: - Netflix has 5-6 Billion USD free cash flow, and because they got what debt they do have under favorable terms, they are positioned to retain most of that free cash flow - Disney, Comcast (Peacock), CBS/Viacom and other media corporations are saddled with debt, and are all losing money on their own independent streaming businesses. Likely untenable in their shareholder model - T…

HBO / Netflix merger FTW?

That would now mean buying out WarnerMedia Discovery Group which just merged, and WarnerMedia was the owner of HBO before that. AT&T was forced to divest at least.

Never the less, that would be a massive acquisition, they carry alot of debt.

Re: Netflix's New Chapter

#15

Post by bcrosby95 »

zamadatix wrote: post #11
no_wizard wrote: post #7

I'm gonna attempt to break this down: - Netflix has 5-6 Billion USD free cash flow, and because they got what debt they do have under favorable terms, they are positioned to retain most of that free cash flow - Disney, Comcast (Peacock), CBS/Viacom and other media corporations are saddled with debt, and are all losing money on their own independent streaming businesses. Likely untenable in their shareholder model - T…

What I don't understand is how e.g. Disney+ is losing so much money. It's Disney's content, has an enormous userbase, and somehow is bleeding billions?

It's extremely cheap.

Re: Netflix's New Chapter

#16

Post by thiago_fm »

Something I don't understand is why Disney and others need to have their own streaming service.

Why Netflix can't sit down with Disney and merge the two streaming services. Disney is amazing at making content, so is Netflix at the moment.

They could take a look at the present, their market cap, debt and so on and structure a solution that would:

1. Make Netflix the best streaming service with the best content, also best variety as it would have all of Disney

2. Fix the negative cashflow from Disney and its streaming service AND give them a good amount of control of Netflix, and its profits

I doubt Amazon or Apple would be able to compete against Netflix in that sense. Their content is also good, but hard to compare against a Netflix+Disney combo. They would easily eat a lot subscribers from the competition.

Also, business-wise, it would make a lot of sense for Disney. They wouldn't need to support their crappy app or do any engineering work at all, because they aren't anywhere as close as Netflix in that sense, and they will need at least a decade to get where Netflix is, maybe never, as they don't seem to be able to know how to run a technology company AT ALL.

Also users would be happier and thankful again, as they don't need to pay for so many services. Right now it is a fucking pain in the ass.

Re: Netflix's New Chapter

#17

Post by matwood »

no_wizard wrote: post #7

I'm gonna attempt to break this down: - Netflix has 5-6 Billion USD free cash flow, and because they got what debt they do have under favorable terms, they are positioned to retain most of that free cash flow - Disney, Comcast (Peacock), CBS/Viacom and other media corporations are saddled with debt, and are all losing money on their own independent streaming businesses. Likely untenable in their shareholder model - T…

Good summary. Couple notes/IMOs...

HBO Max is great, but it's tied to a terrible management/company anchor. Rumor is now they are going to drop the trusted HBO brand smh.

Netflix is well positioned, but a player like Disney is also setup to acquire other streamers as they fall over from cost structure issues. I think we're about to see mass consolidation.

Finally, I'm kind of sad that I think the content 'golden era' is likely coming to a close. Cheap money and the fighting for subs led to more money being spent on content relative to what subs paid than at any other point in history. If nothing new was ever made again, I think the list my wife and I already have to watch is longer than time we have left living.

Re: Netflix's New Chapter

#18

Post by gumby »

I had never heard this part about Blockbuster:

> Blockbuster ... started with Blockbuster Online, an entity that was completely separate from Blockbuster’s retail business for reasons of both technology and culture...a test version went live on July 15, 2004 — the same day as Netflix’s quarterly earnings call

Blockbuster really snatched defeat from the jaws of victory. The corporate incentives had become completely backward. As we commonly see time and again in oldline companoes like GE, Sears, Google, Boeing...

Re: Netflix's New Chapter

#19

Post by no_wizard »

zamadatix wrote: post #11
no_wizard wrote: post #7

I'm gonna attempt to break this down: - Netflix has 5-6 Billion USD free cash flow, and because they got what debt they do have under favorable terms, they are positioned to retain most of that free cash flow - Disney, Comcast (Peacock), CBS/Viacom and other media corporations are saddled with debt, and are all losing money on their own independent streaming businesses. Likely untenable in their shareholder model - T…

What I don't understand is how e.g. Disney+ is losing so much money. It's Disney's content, has an enormous userbase, and somehow is bleeding billions?

Marketing. I also suspect that alot of Disney's most core userbase don't make up enough volume to make this profitable.

I consider myself an ardent Star Wars & Marvel fan and I just couldn't keep up anymore, so I axed Disney+.

Netflix still drops enough documentaries that I keep it around.

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