Netflix stock is down about 70% since the start of the year, and I’m worried and feel a tad guilty. I’ve never owned Netflix shares, but I’ve been a consumer of their content at what I consider to be a ridiculously unfair bargain in my favor. The premium monthly Netflix subscription is $20. My wife and I watch at least 20 hours a month of what we consider to be terrifically entertaining and high quality content. Completely free of commercials. That’s fifty cents per hour per person.
Interesting! I had read about the more commonly discussed reasons for Netflix’s downturn -e.g., increased competition, loss of important licensed content to the owners of the content who now have their own streaming channels (e.g., Friends to HBO Max), and the inability of Netflix to solve the problem of account owners sharing their password. But I’ve never read about or considered the role that cheap money played in all of this. An excellent and widely overlooked insight. Thanks!
Interesting take - you might enjoy this article too (https://www.nytimes.com/2021/06/08/technology/farewell-millennial-lifestyle-subsidy.amp.html)
I guess prices have already risen.
Simple: just short each of these companies a few dollars per month to hedge against any price increases.
Interesting! I had read about the more commonly discussed reasons for Netflix’s downturn -e.g., increased competition, loss of important licensed content to the owners of the content who now have their own streaming channels (e.g., Friends to HBO Max), and the inability of Netflix to solve the problem of account owners sharing their password. But I’ve never read about or considered the role that cheap money played in all of this. An excellent and widely overlooked insight. Thanks!