For example, just announced is “The Gray Man” which Netflix is producing for $200M. Since the vast majority of the people who will watch it already have Netflix subscriptions how does Netflix actually make profit off this movie?
It’s not like it will encourage someone who’s subscription expires months after to hang on because of that one movie so where is the gain?
In: Economics
It technically doesn’t allow it. Netflix is absolutely drowning in debt. They have funded basically their entire business the last 5 years on 7% loans with no end in sight and revenue is not catching up as costs increase far more then they expected.
No one is really sure what the outcome here is. Their spend rate is wildly unviable to continue, but it’s also driving it’s growth. Things are gonna get weird.
Latest Answers