Netflix (NFLX) where does it go from here?

I really like NFLX right here. I think the profit boost from the password sharing crackdown was a one-off, but still a great strategic success for them. They’ve proven they have pricing power going forward, which is huge…

I think now it’s just a matter of how low will it go before it reverses. Earnings next week also. If it falls further, I’m in

And their big shows like stranger things have ended now and that’s what kept people hanging in there until those shows concluded

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transition the platform to ad supported

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They already have.. they have 250 million subscribers on their ad plans. They are primarily gaining revenue growth through ads. They already built a robust ad platform, they serve more video ads than basically anyone that is not alphabet.

Majority of new subs are ad supported, as many won't pay the high prices for ad free. I see it more likely that completely ad free options will go away

Own a small amount of shares on this but thinking about dumping. This just seems like dead money but will hold until earnings . If bad will just take the L and move on.

I own a ton of Netflix. I feel like it's the last app "cord cutters" would cut and likely the first one they added after cutting the cord.

Their decision making is infuriating. The elephant in the room is they own a small fraction of their streaming IP. Something like 2/3 of their most popular programs are rented from competitors. As those streamers consolidate, they will sunset those agreements.

Alternatively, Netflix notoriously wastes nine figure sums on their exclusive deals that routinely produce nothing of substance, and then they route production to foreign countries to make the financials seem better.

I think their direction will hinge on their live sports decision. NFL contracts are coming up in a couple years, and they’ll want far more than UFC and the NBA just received….but most analysts agree those were bad financial choices. Hell, WBD knew it couldn’t justify $3bil to renew its NBA contract, but somehow PSKY thought $8 bil for UFC was a good idea.

If Netflix enters that fight subscriptions prices will really accelerate ….not to mention ancillary obligations like obligations bundling of WNBA or professional lacrosse, etc to prop up those businesses.

People express the cord cutter loyalty aspect, but there’s a compelling argument about just using tubi or Pluto for free vs paying $15 for Netflix. If Netflix doubles their ad free subscription like they’ve previously discussed, there’s no way they will hold their current user count let alone grow. The final argument is international growth, but look at those subscriber rates. Every streamer charges just enough that people will pay something instead of pirate.

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I'd gladly pay the Netflix fees for the no adds version.

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The problem is they are upfront that they don’t want people opting for the ad free tier which they subsequently increased while simultaneously deduced the ad supported option.

The question is how far can they push their model in the opposite direction of consumer demand? They’ve intentionally recreated the cable dilemma. People didn’t cut the cord because of the price, they cut it because they could no longer find content that interest them, and that alternative content was conveniently cheaper.

Until the Disney Hulu merger their solution to provide cheaper content was to play the studios against one another for discounted licensing fees. Once that approach began to dry up they were lucky to find a cash strapped WBD who licensed a slew of IP previously only available to Max subscribers. Once that agreement ends, the only remaining existing content that’s available will be AMC and Lionsgate.

One of Netflix's major problems is that everyone and their cousins are getting into the market and competing for the same customers.