> But financial analysts underestimate the risks Netflix took on when it decided to be self-sufficient, creating its own library of movies and TV shows. This hu

> But financial analysts underestimate the risks Netflix took on when it decided to be self-sufficient, creating its own library of movies and TV shows. This huge and ongoing cash drain is a weakness, not a strength. this is a terrible analysis. Netflix recognized early on that they need to start yesterday (years ago) before other streaming services came online. it's why they're still relevant today. Otherwise I must confess: I was bearish on netflix, and still am overall. But their investments are thoughtful and strategic, squid game being a recent example. I don't love them, but they're the only service I'm paying for. their weakness is the monthly cost for unlimited streaming. Once you're basically in every home, the only way you can extract more money is to raise the rates. When a hit show comes out, people may signup for a month to watch and then cancel, and they certainly honor that behavior. But they're also mindful of ads and the expectations of their current user base, and will have to get creative on generating new revenue. I give them 50/50 they find a way.