NetFlix To Borrow $2 Billion More... Total Debt $15.5 Billion

[S0436 9,500]

I was wondering the other day why their shows have such big budgets for an online streaming service.  Now I know why!

[Morphine Prince 86,041]

Can someone explain their business model? 

It makes no sense to me to have so much debt and no profit. 

[Economy 33,801]

14 minutes ago, Big Brother said:

Imo there should be one payment for most of streaming services and user could choose what he want to watch, for example: I want to watch Scream Queens, because it's on Hulu, but I won't pay for it only to watch one series, cause I watch Netflix daily.

Imo it could be like this: you spent 6 hours on watching Hulu and 14 hours on watching Netflix? Okay, let's assume it and you'd get the cost to pay.

Agreed. I wanna whatch Star Trek Discovery but dont wanna buy the entires CBS service just for 1 show

[Lord Temptation 11,207]

Yassss debt.

I smell a hostile takeover.

[Jed 7,386]

The point didn’t show up so I thought it was 155 billion it didn’t even make sense

[Seeka 12,370]

And pirating remains unbothered. 

[Economy 33,801]

6 minutes ago, Morphine Prince said:

Can someone explain their business model? 

It makes no sense to me to have so much debt and no profit. 

They are in an agressive growth phase. Sacrafice profits for growth and market share gains at all cost to dominate the market

 

they are probably hoping it pays off later on even if it means they have to run losses now

 

this happens a lot in new sectors especially that are in their infancy and its a race to domination

 

A lot of companies in fast growing legal pot market have a simmilar business model as did many tech companies during the computer revolution of the late 90s. Amazon is in the same boat. Its huge but it was also built on a huge pile of debt

 

Corporations running losses is not uncommon even when they arent in their growth phase anymore

 

the business world is a competitive world and even big companies arent immune to struggle despite the common belief that all Corporations are saturated in money

 

As someone who has invested a lot in the past (before i got married and had more money) i had to research companies and their stock and stuff before making my pics

 

Companies like Apple that have huge profit margins (near 30% of revenue) are outliers. A typical Corporation has a profit margin of only 5% to 10% with underperformers often running losses

[Economy 33,801]

5 minutes ago, Jed said:

The point didn’t show up so I thought it was 155 billion it didn’t even make sense

Thats a small Nations debt

[Babel 39,253]

Anyone find the power Disney has a bit scary? they’ll  release their streaming platform and it’ll probably absorb all the smaller companies, leaving no competition at all. 

[AlexanderMagno 10,701]

It's not that I understand Economics that much, but if I'm not mistaken I've come to realise that most businesses live like that looks like that's how the whole world works, by managing its huge debts. At the end of the day, money is just a concept far more complex than its amount, and a business stands for much more.

[TheSlash 10,774]

1 hour ago, AdmistTheLight said:

It will, after being bought by Disney that is.

Hopefully with a full account migration to Disney+, so I can watch some of the exclusives  .

[Miracle 14,068]

They should stop making so much original content.

[Rock Jock 967]

1 hour ago, Mistress Dita said:

Why are they allowed to keep borrowing money without any payments being made. Who is allowing this for a ****ing entertainment company 

many large companies work the same way. Amazon is also in huge debt but still successful 

[Lord Temptation 11,207]

4 minutes ago, Rock Jock said:

many large companies work the same way. Amazon is also in huge debt but still successful 

But Amazon has lots of inventory, logistics, real estate and transport. What assets does Netflix have?

[FlopSlurper 34,336]

please finish avatar the last airbender live-action series and the dragon prince then go bankrupt or whatever