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Marginal cost is a supply side issue. Netflix supply is bandwidth, but also CoNtEnT. They need a constant stream of films and TV shows to be valuable to the cus
by muddi900 4y ago
Marginal cost is a supply side issue. Netflix supply is bandwidth, but also CoNtEnT. They need a constant stream of films and TV shows to be valuable to the customer and attract new customers.
Anyway, what I wanted to say was that while Netflix is overvalued, it is a very good media business. It has access to every market in the world besides China, it has brand equity in those markets as well and its only competition would take years to catch up. It just should be valued like Disney or DicoveryWarner.