I really liked how you framed the strengths of the company, their culture and the risks as they try to figure out where the next wave of growth is going to come from. Here are some ways I've thought about what Netflix is doing differently than others -
1. While there are many other players who make superhit TV shows (HBO ofcourse), Netflix has played their cards differently - they are making a lot of international shows so a cultural catalyst in that way (sitting here in America, I can understand the culture in Poland or Korea or wherever).
2. They are taking the Hollywood machine - the expertise to international markets. So soon - people in countries that didnt have those skills are empowered to tell great stories!
3. They've demonstrated that great stories dont necessarily need to be told by superstar actors and actresses. Many of their shows have casts that you've not heard about but they are excellent stories. In that way, they seem to be democratizing the playing field for the stars.
Fascinating analysis! At this point, I'm not only reading to gauge investment opportunities but to learn about the inner workings of high caliber companies and their creative potential. Your work is very much appreciated, Antonio.
My assumption is, that some of the streaming platforms might shift back to the produce and distribute model, as competition in streaming will erode margins and some companies will be faced with their high debt burden. This would benefit Netflix greatly, as the company with the most scale will benefit from this partly-reversion to the old market structure.
I really liked how you framed the strengths of the company, their culture and the risks as they try to figure out where the next wave of growth is going to come from. Here are some ways I've thought about what Netflix is doing differently than others -
1. While there are many other players who make superhit TV shows (HBO ofcourse), Netflix has played their cards differently - they are making a lot of international shows so a cultural catalyst in that way (sitting here in America, I can understand the culture in Poland or Korea or wherever).
2. They are taking the Hollywood machine - the expertise to international markets. So soon - people in countries that didnt have those skills are empowered to tell great stories!
3. They've demonstrated that great stories dont necessarily need to be told by superstar actors and actresses. Many of their shows have casts that you've not heard about but they are excellent stories. In that way, they seem to be democratizing the playing field for the stars.
Thoughts?
Fascinating analysis! At this point, I'm not only reading to gauge investment opportunities but to learn about the inner workings of high caliber companies and their creative potential. Your work is very much appreciated, Antonio.
Wonderful analysis - thank you 👐
Great read!
My assumption is, that some of the streaming platforms might shift back to the produce and distribute model, as competition in streaming will erode margins and some companies will be faced with their high debt burden. This would benefit Netflix greatly, as the company with the most scale will benefit from this partly-reversion to the old market structure.
Very interesting information and your view on risk/reward regarding the stock in also important. Thanks and keep up!
This is awesome, thank you for sharing!