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> with only one stream of income - subscriptions That's not accurate. Netflix can and do license their Netflix Originals just the same as any other production

> with only one stream of income - subscriptions That's not accurate. Netflix can and do license their Netflix Originals just the same as any other production studio. They just don't do so as frequently as streaming is a superior delivery platform (from their perspective) in terms of user lock-in & profitability (no middle men). Those latter two reasons are a strong driving force for why Disney (and prior to that Fox) have been moving into the space. > getting in tons of debt Do you have a source for this being a concern? Everything I've ever read indicates their profits are soaring e.g. - https://www.macrotrends.net/stocks/charts/NFLX/netflix/gross-profit https://www.macrotrends.net/stocks/charts/NFLX/netflix/gross... - https://www.marketwatch.com/story/netflix-is-growing-even-faster-and-streaming-to-record-profit-totals-2018-04-16 https://www.marketwatch.com/story/netflix-is-growing-even-fa... Granted, I can see there are articles regarding them being in debt: - https://www.news.com.au/entertainment/tv/is-netflix-in-debt-what-that-20-billion-really-means/news-story/1e5878306f458237230f62eea5d4b94b https://www.news.com.au/entertainment/tv/is-netflix-in-debt-... However, even that article ends with: > SO IS NETFLIX’S DEBT EVEN THAT BIG OF A DEAL? > Nope! Every company has debt. Apple boasts some $US100 billion in debt, Disney around $50 billion, and Amazon about $8 billion.

scarface74 7y ago
You’re really comparing Netflix with a total yearly net income of less than $1.5 billion with a total debt of 10.1 billion (https://ycharts.com/companies/NFLX/total_long_term_debt https://ycharts.com/companies/NFLX/total_long_term_debt) to Apple with a total debt of $50 billion with a net income of $57 billion? Apple borrowed money to pay dividends and stock repurchasing to get around repatriating income before the tax changes. Netflix is borrowing money to keep up with much larger studios. That's not accurate. Netflix can and do license their Netflix Originals just the same as any other production studio. They just don't do so as frequently as streaming is a superior delivery platform (from their perspective) in terms of user lock-in & profitability (no middle men). Those latter two reasons are a strong driving force for why Disney (and prior to that Fox) have been moving into the space People don’t buy Netflix Originals on DVDs like they do Disney properties. People are still buying Disney DVDs of movies released 50 years ago. Disney is moving into streaming as an additional source of income.
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scarface74 7y ago

You’re really comparing Netflix with a total yearly net income of less than $1.5 billion with a total debt of 10.1 billion (https://ycharts.com/companies/NFLX/total_long_term_debt https://ycharts.com/companies/NFLX/total_long_term_debt) to Apple with a total debt of $50 billion with a net income of $57 billion? Apple borrowed money to pay dividends and stock repurchasing to get around repatriating income before the tax changes. Netflix is borrowing money to keep up with much larger studios. That's not accurate. Netflix can and do license their Netflix Originals just the same as any other production studio. They just don't do so as frequently as streaming is a superior delivery platform (from their perspective) in terms of user lock-in & profitability (no middle men). Those latter two reasons are a strong driving force for why Disney (and prior to that Fox) have been moving into the space People don’t buy Netflix Originals on DVDs like they do Disney properties. People are still buying Disney DVDs of movies released 50 years ago. Disney is moving into streaming as an additional source of income.

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