Down 25% (as of now, 35%)
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A couple of things from the article linked in the opening post caught my eyes:
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The Russia-Ukraine factor: The company said that the suspension of its service in Russia and the winding-down of all Russian paid memberships resulted in a loss of 700,000 subscribers. Excluding that impact, the company said it would have seen 500,000 net additions during the most recent quarter.
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The COVIC-19 factor: Netflix was an earlier winner when Covid lockdowns sent families inside and searching for entertainment. But the company now says pandemic-era gains “clouded the picture” for the company and that it’s seeing a downturn as people return to more normalized out-of-home activities.
The withdrawal from Russia is a one-time event. The ascendant and then reversal of fortune due to COVID-19 is also a one-time event. I don’t think I want to read to much into the longer-term prospects of Netflix or the streaming video-on-demand business model based solely on a quarter’s result heavily influenced by these two one-time events (admittedly the COVID thing stretches out over many quarters). Competitions from other streaming services … yeah, those are here to stay.
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I bought some of their stock yesterday. Down 35% for the day (and 70% over the last few months), we'll see. I have found lately that each time I go to watch a movie on Netflix it isn't available... we've been subscribers for 10+ years and I feel like you used to be able to watch anything on there, now I guess they've lost the rights to many titles?
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@89th said in Down 25% (as of now, 35%):
I bought some of their stock yesterday. Down 35% for the day (and 70% over the last few months), we'll see. I have found lately that each time I go to watch a movie on Netflix it isn't available... we've been subscribers for 10+ years and I feel like you used to be able to watch anything on there, now I guess they've lost the rights to many titles?
That’s why they’ve been working so hard at creating content. They knew it was coming for a while…
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You've got intense competition on streaming services for content now.
I still advocate for somebody to set up a version of the old Hollywood studio system, where you could sign young talent cheap and develop them, along with using sets for multiple films and lowering costs. You could also use one of Hallmark's tactics and hire older, well-known actors in the twilight of their career for supporting roles...Those guys will usually work cheap, especially if the offered role is not taxing or if the part is written well.
I'd spend a good portion of the money on writers, editors and directors, especially on up and coming talent.
I think a company could make some very good movies and mini-series in the $1.5-$5M range.
