3 ms·
How do you imagine they are "raising the price simply because they can" when their growth has slowed[1] and they have decided to no longer use debt in order to
by bogomipz 5y ago
How do you imagine they are "raising the price simply because they can" when their growth has slowed[1] and they have decided to no longer use debt in order to finance content?[2] I think those two facts taken together are a much more plausible explanation of why they are raising prices i.e because they have to. Further given the competitive head-winds they're now facing streaming space they are definitely not in position of price leadership.
[1] https://www.marketwatch.com/story/as-netflix-growth-slows-streaming-pioneer-plans-to-open-up-its-viewer-metrics-11634690003 https://www.marketwatch.com/story/as-netflix-growth-slows-st...
[2] https://www.nytimes.com/2021/01/19/business/netflix-earnings-debt.html https://www.nytimes.com/2021/01/19/business/netflix-earnings...
- neximo64 5y agoAfaik their revenue hasn't dropped its only slowed - meaning the strategy works since it boosts their margins.