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The fundamental problem for Netflix is they have to make money from their subscriptions. Amazon can fund video production at break even or a loss indefinitely.
by AJ007 7y ago
The fundamental problem for Netflix is they have to make money from their subscriptions. Amazon can fund video production at break even or a loss indefinitely. Apple might be able to too, but their shareholders won’t be happy. Google+YouTube is another potential problem, at some point if they so choose to be. For certain demographics, they are fine just watching YouTube all day and not wanting a Netflix subscription.
Disney appears to be another big threat for IP reasons, but we have yet to see how their rollout goes.
Netflix probably has to sell ads and/or do something else to remain independent, if the other big tech companies are going to continue to desire to be media companies. If Netflix’s stock drops a lot, they’ll be a big acquisition target.
- markandrewj 7y agoTime will tell. Apple undercutting Netflix in price may convince people to switch platforms, but if Apple does not have a good library of content they will likely struggle to retain users. Although user growth has slowed at Netflix, user retention has remained high. Netflix's stocks have dipped, but it is expected considering all the recent news. I am not a trader, but people often buy on rumor and sell on news.