3 ms·
Because their strategy is massive investment into original content to maintain market positioning now that the market is splintering into IP-driven streaming se
by badloginagain 7y ago
Because their strategy is massive investment into original content to maintain market positioning now that the market is splintering into IP-driven streaming services.
Investors signal they approve of this strategy by continuing to invest in Netflix, despite not getting juicy dividends.
Netflix could massive reduce spend on OC and payout dividends, but that would be ultimately damaging to the long-term success of the company.
- Ididntdothis 7y agoThat actually makes the business model questionable long term . Successful companies make profits while they are still able to invest in their future.
- majormajor 7y agoNetflix's competitors are willing to burn short term money to try to make inroads, so the market is already distorted here.