Pooooor Netflix

Salesforce !bhfugjkb
Sep 24 36 Comments

Non stop bad news on netflix. Its not easy to produce such a good content. I really wonder if apple can do it. From technology standpoint it can beat but i wonder on content.

Disney has a chance though.

Last but not least, playing game with lower subscription fare is not gonna work long term for these companies.

Though i see Netflix is being beaten i still feel long term winner would be netflix. The question is by then how much will it drop and regain?

comments?

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TOP 36 Comments
  • Netflix razorlab
    The competitive edge we have, for now, is that we are both a studio and a tech company with big presence in both LA and Silicon Valley. At the end of the day, we are just pushing data around. It use to be moving media files from vhs to dvds. Then it was moving from physical dvds to the internet. Now it’s all about moving mass around of data both from studios to some storage medium and then streaming to the world. This infrastructure can be easily copied. Some companies like apple can do it faster and maybe even better than, say...Disney. Netflix need to learn how to make films, ideally before all the other platform takes off from a tech perspective. Content is a huge focus. Winning awards is important but what really defines good content... who knows...glad it’s not my job to figure that one out.
    Sep 24 5
    • Deloitte / Other Gfes23
      Nice insight 👍
      Sep 24
    • Netflix razorlab
      The tone on the street reflect this exact concern. Everyone wants to know how Netflix will perform as a movie making company instead of a streaming platform. Content, content, content. The negative stock performance means investors aren’t confident right now in Netflix ability to make good shows to rival really..... just Disney. Imagine if we had something that can rival Star Wars or Marvel. Our shares would be at a very different place.
      Sep 24
    • Netflix / Eng OA3
      Content that get watched by high number of people relative to its cost is good content. It's like box office.
      Sep 24
    • Netflix razorlab
      But with increase competition, maybe it’s time to look beyond comparing our shows internally. What metrics do we have to measure success of our show to that of hbos or amazons?
      Sep 24
    • Cisco / IT shdifigbrk
      In the days of ever-decreasing attention spans - one metric may be how many shows are watched start to finish vs drop off halfway through the first episode?
      Sep 24
  • Goldman Sachs / Project not Lloyd
    i mean, apple did pretty good with monopolizing digital music sales. But, Disney is a media producing powerhouse.

    🍿
    Sep 24 2
    • Cerner RMuh72
      Apple Music sits behind Pandora, Spotify and I Heart in terms of subscribers.

      Also, music is vastly different, and far cheaper, than original content.
      Sep 24
    • Goldman Sachs / Project not Lloyd
      Sales, not streaming.

      But, good point on production cost.
      Sep 24
  • Apple 🍎gy
    All Netflix needs to do is announce a super basic plan for $4.99 with limited ads like Hulu and announce an ad platform. Then stock would bounce back three fold. This social sentiment in market is too stupid.
    Sep 24 4
    • Twitch / Design Gy829djd
      Uncertain whether Netflix could do that as they dont have an in house ads team and doing that would take a lot of work.

      Also, pricing down may mean cannibalization their more lucrative subscription business which may easily backfire.

      Not to mention potential price war
      Sep 24
    • Cerner RMuh72
      Yes, because the race to the bottom works so well.
      Sep 24
    • Salesforce !bhfugjkb
      OP
      They will screw if they reduce price with not much of cash coming in. Ads on a paid subscription service, I wonder.
      Sep 25
    • Apple 🍎gy
      Blinders never cease to Amaze me.

      1. Yes, Netflix likely will not offer such limited ad plan as I proposed, their focus is rather on content. But it’s a losing battle and Netflix doesn’t have the money or resources to compete with production houses, yet.

      2. Such a limited ad offering is easy way to bring in more cash.

      3. Netflix has about 80% market permeation in American households of cable cutters. That’s a lot for advertisers to focus on.

      4. Subscribers who would switch from ad free to limited ad offering would be very low. Ad revenue from advertisers is a significant chunk.

      5. If Netflix indeed wants to do it, they have the technical smarts and talent who can achieve that. Hulu already does this and it didn’t impact their revenue based offering.

      6. Reed Hastings has to keep his mouth shut for the investors sake, every time he talks about competition wall street panics.

      7. Netflix is not shy about switching the course, remember the 2011 kwikster debacle and stock price crash anyone?
      Sep 25
  • Amazon SeekinRef
    @OP and others, what are you thoughts on Amazon Prime Video in this race ? Given the recent Emmy results ( HBO:9 , Prime Video :7 and Netflix : 4) , I believe Amazon too is a major player now
    Sep 24 7
    • Twitch / Design Gy829djd
      I would agree. I wasn't saying that Amazon is trying to be a half assed competitor, but I do think Amazon videos can get away with either profit loss for extended periods of time, and or slightly inferior quality as the ecosystem play can make up for the rest and prime videos would still be a competitive threat to Netflix
      Sep 24
    • Netflix razorlab
      I thought HBO had 34 wins.
      Sep 24
    • Netflix bread
      Awards don’t necessarily drive viewership. We are out to get and entertain your eyeballs, even if it’s trashy reality tv.
      Sep 25
    • Netflix razorlab
      But talent... we need people willing to work with us. It can be trashy tv but we can’t just have it star some boring person. The fight for even your average joe no name talent will be intense going forward.
      Sep 25
    • Salesforce !bhfugjkb
      OP
      There is always different between ByProduct vs The Only Product. I feel for Amazon, it’s just addon to prime benefits which is good to offer more benefits to stay for the membership.
      Sep 25
  • Twitch / Design Gy829djd
    I think content owners are becoming increasingly protective of their ips. They played coy and acted friendly for years to get their content out there through distribution partners, whether linear TV or through folks like Netflix.

    But I think they eventually reached a conclusion that it doesn't actually matter how their content is distributed; their fans are willing to go where ever to watch it. So why give someone else a cut of the pie when you don't have to?

    It's the same concept as game companies selling games through their own launchers instead of through Walmart. You basically disintermediated the middle guys cause there was no longer a reason for them.

    I think same is happening to traditional media. Netflix will likely continue to suffer unless they can make another big hit again like house of cards. But it's not always so easy to do so
    Sep 24 3
    • Netflix / Eng OA3
      The idea is not wrong. But most services can't make it without scale. Every goods can sell through their own website only, why do they end up paying Amazon?
      Sep 24
    • Twitch / Design Gy829djd
      I think it's a bit different for physical goods distribution right? In a classic mgmt consulting framework, the question is basically can the future profit from undercutting middleman outweigh the current cost of setting up distribution system.

      As it pertains to physically shipping goods, thats just a damn hard business to get into and so there's no sense of getting into that business. You can outsource low margin distribution to someone else when you can focus on more value added initiative.

      But for digital distribution, it's a different story. Companies like steam and epic, as well as all the other major pub devs pushing their own game launchers and going direct to download has in essence killed gamestop. It's the same as Netflix originally killing blockbuster.

      So for the past 10 years, I'll agree that the Netflix scale meant everyone put their content out onto Netflix for maximum viewership and scale. But now that people are realizing that their viewers are die hard fans who will go anywhere to watch their content specifically (or so they think), then people will once again ask, wait... Why do we need Netflix as the middleman again if we can create our own streaming service given the tech is widely available now
      Sep 24
    • Netflix / Eng OA3
      Because people won't subscribe for 100 services. If you don't make it to a shortlist of 3 or 4, you are a niche service and you may never be profitable. Streaming on your own has a high maintenance cost. It's not just server and bandwidth. Marketing, call center, tech staff etc. As a matter of fact, Netflix is the only profitable streaming service.
      Sep 24
  • Uber whoberrr
    On the point about long term low prices, Apple has a lot of cash to burn.
    Sep 24 2
    • Salesforce !bhfugjkb
      OP
      Yes they have. Do they wanted to burn for the sake of burning it without making profits unless they see a up sale with low subscription fees?
      Sep 24
    • Uber whoberrr
      With their focus shifting towards a more service based business model, I can see them burning some cash to gain market
      Sep 24
  • Disney Streaming Services teammickey
    Plenty of profits to be had in this space. I don’t think there will really be one single winner vs winners of different audiences. Netflix has enjoyed basically a monopoly for a while. I think that will end, but I’m certainly not thinking “Poooor Netflix” because they have competitors on the way. With all the $$$ on the line, they had to know it was coming.
    Sep 24 1
  • Deloitte / Other Gfes23
    Pardon my ignorance, what happened to Netflix?
    Sep 24 1
    • Goldman Sachs / Project not Lloyd
      Disney and Apple happened
      Sep 24
  • Microsoft / Eng
    boban

    Microsoft Eng

    PRE
    Oracle
    bobanmore
    But you’re still at Salesforce 😂
    Sep 24 1
    • Salesforce !bhfugjkb
      OP
      Doesn’t matter. I am hard core streamer and picky on the content.
      Sep 24
  • Netflix / Eng OA3
    Hulu is losing money. Netflix is profitable. Dummy.
    Sep 25 0

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