Amazon acquisition of MGM threaten to Netflix
After Amazon acquired MGM do you think Amazon will kill Netflix?
MGM acquisition is the last nail - not the first for Netflix. It started with Disney and HBO pulling all their content from Netflix. Then came Warner and Paramount and now MGM. Netflix was running over pure overseas growth for last 3 years. Covid gave it one last push. The price increases shows how desperate they are.
Good hindsight summary
Believe it or not, I saw this coming 3 years ago. Never invested in Netflix - and am not an options guy to bet against it - a rookie investor. It’s easy to know the fate of companies that we regularly use.
Netflix is dying. Will struggle to be relevant with competition. Does anyone watch Netflix daily? I guess most people watch some shows which get hyped. Netflix games is failed venture
Should they sell themselves ?
No they are too big to sell themselves. Netflix craze will flatten imo It will be like Disney or any other streaming service. And eventually thrown out of FAANG acronym
Pressure’s mounting on Netflix. They were able to dominate due to their edge in market share thus ability to gain media more cheaply. But with competitors pulling deals, could be bad news for them. I’ve been wondering about Spotify in the same way as well.
Spotify has sticky audience and people use it daily. Not apple to apple comparison right there! Once you go Spotify you never look back imo
Apple Music has been growing in user base, and YouTube music has been offering features that add capabilities to normal YouTube. It won’t be overnight that a giant like Spotify falls if it does, but stock prices being down >50% from ATH doesn’t paint a pretty picture.
Jeff Bezos is real player in Industry.
Netflix is a seasonal industry business similar to games. Like games are Popular during the launch similarly Netflix get huge audience during launch of popular web series and then number of active users drop. Will Netflix be obsolete? Probably NO! As they might drop more shows. But do they have exponential or consistent growth in future? No! They are looking different ventures like Netflix games but that’s a flop show
That’s what they try actually to escape. They strive to make experience of watching as delightful as possible . They invest a lot in tech ML, big data to make insightful and fruitful decisions for them and their audience
Netflix should have created other streams of income for them like Hardware or even advertisement. Amazon sale of firestick is driven a lot due to Netflix type OTT's.
Their edge is in the technology and not in content creation. Best way forward for them is to take over the streaming part for 3rd parties. Become the AWS of streaming like AWS is for cloud.
You do understand that they use AWS underneath for scaling their services? You means to say they sell their abstractions to the public? 🤣
I mean wrap up the CDNs, suggestion algorithms and all the other things that make their streaming “experience” better than that for Prime/Disney/HBO etc. Let Disney, HBO, Warner focus on content and let Netflix only focus on the streaming- not both. Obviously- this is how it started but probably Netflix was taking a bigger cut from the content providers?
Anyone want to take a guess on what can be the impact of the crack on password sharing thing? Understand that it’s necessary but I would hope they pull off other stream of income instead of something like this. Price increase and then limit password sharing could mean they struggle to find another source of income?
It's true we saturate US market because there's too much password sharing. It's also true we raise price without much churn.
And MGM? LoL. It will make a difference if Amazon acquires Disney, not 8.5b MGM
Actually curious - do any of you use Amazon Video or prefer it over Netflix?
Use both depending upon shows