3 ms·
I'd be careful to make a claim as big as "the bottom is dropping out," but Netflix is facing a few headwinds. - Lots of competition, some more serious (Disney+
by dehrmann 5y ago
I'd be careful to make a claim as big as "the bottom is dropping out," but Netflix is facing a few headwinds.
- Lots of competition, some more serious (Disney+) than others (Amazon)
- Nearing the top of the streaming adoption curve
- End of the stay-at-home covid bump
The covid impact is noise in the long (5+ years) term.
Reaching full adoption is a sign of maturity overtaking growth. You run the company differently, but it's not "the bottom dropping out."
Competition is rough. The competitors have deep pockets and back catalogs, but consumers have no appetite for 6 separate services. This is where I'd be worried.
I empathize with the recommendation and UI gripes, but I doubt they're driving Netflix's woes.
- adam_arthur 5y agoMoving from a growth company to a stable company just implies it deserves a much lower valuation multiple, which is what the market is adjusting to. My question is, how did people not expect this given that a huge XX% of the first world already uses it, and there are tons of viable competing streaming services popping up like weeds? They had a first mover advantage, and that was pretty much it, but streaming is a solved technology now. Competition took much longer to mobilize than it should have, but it's finally here now. At the end of the day the only differentiator for Netflix is as a production company. Up to you to decide what their moat is there
- rc_mob 5y agoHi. You are 1000 times smarter than the idiot author of the article. The linked article mentions none of these.