4 ms·
Shareholders like VCs generally want growth and even if Redbox could gobble up Netflix's DVD rental market share, the market itself is stagnant if not shrinking
by hnbad 3y ago
Shareholders like VCs generally want growth and even if Redbox could gobble up Netflix's DVD rental market share, the market itself is stagnant if not shrinking at this point so a short-lived growth opportunity is not particularly appealing. Redbox could monopolize the DVD rental market and investors still wouldn't be excited because it can't move anywhere from there and it would end up plateauing in a very boring niche.
Investors don't care about profit of the business, they care about profit of their investment (ROI). Whether a company is profitable or bleeding money only matters as part of the prediction on where the share price will go.
- alephnerd 3y ago> VCs generally want growth and even if Redbox could gobble up Netflix's DVD rental market share, the market itself is stagnant Netflix IPOed in 2002 and Redbox's parent company is a penny stock (Chicken Soup of the Soul Entertainment // NASDAQ: CSSE) VCs do not invest in public entities. The companies that invest in public entities are Investment Banks and Private Equity, both of which are different industries with different norms and regulations from Venture Capital