2019-05-02 13:30:00 Thu ET
trust perseverance resilience empathy compassion passion purpose vision mission life metaphors seamless integration critical success factors personal finance entrepreneur inspiration grit
Netflix has an unsustainable business model in the meantime. Netflix maintains a small premium membership fee of $9-$14 per month for its unique collection of TV shows, programs, and movies etc, whereas, HBO charges $15 per month. With its original video content, Netflix earns a mere net profit of 28 cents per subscriber (in comparison to $3.65 for HBO) due to high programming costs and low subscription prices. As Netflix expands into international video markets, these margins cannot be feasible in the long run.
Netflix relies on vertical integration to curate more original video content with lower programming costs. As the average Netflix subscriber streams video for about 2 hours per day, this integration empowers Netflix to charge higher premiums. Netflix can run ads on the broad network of almost 150 million subscribers worldwide (60 million U.S. subscribers) as of early-2019. Ad executive heads from YouTube and JPMC to external media agencies such as UM and MediaLink view running ads as an inevitable fresh fallback route for Netflix. With $15 billion annual costs and $10 billion debt mountains, Netflix needs to find feasible ways to monetize its user base. As NYU business valuation professor Aswath Damodaran suggests, Netflix now has an unsustainable business model.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-05-11 10:28:00 Saturday ET
The Trump administration still expects to reach a Sino-U.S. trade agreement with a better mechanism for intellectual property protection and enforcement. Pr
2019-04-03 11:35:00 Wednesday ET
A Florida fintech group Fidelity Information Services initiates the largest $43 billion acquisition of the e-commerce payments processor Worldpay. Fidelity
2017-12-15 07:42:00 Friday ET
Disney acquires 21st Century Fox in a $52 billion landmark deal. This deal has a total value of about $66 billion while Disney assumes $14 billion of Fox
2017-12-21 12:45:00 Thursday ET
Tony Robbins summarizes several personal finance and investment lessons for the typical layperson: We cannot beat the stock market very often, so it w
2018-01-19 11:32:00 Friday ET
Most major economies grow with great synchronicity several years after the global financial crisis. These economies experience high stock market valuation,
2019-06-17 11:25:00 Monday ET
To secure better economic arrangements with European Union, Jeremy Corbyn encourages Labour legislators to back a second referendum on Brexit. In recent tim