Netflix will now have the same multiples as a TV/Production company, since they make their own series they own the risks of failures, and there have been plenty.
The only way Netflix holds onto subscribers and adds more will be to change its model. Here is my recommendation.
1) Stop dropping all series on day1, trickle episodes on a bi-weekly basis. This will create suspense and followers, it will also create a number of postings on social media where everyone is guessing the next episode. This is gold advertising for free
2) Change pricing, add an annual subscription with a 10% discount. You would be surprised how many will opt for this when their favourite show drops.
3) Stop making Ryan Reynold films, he sucks and his comedy is for the people who cancel subs...trust me, I know many douchebags who like Ryan's movie
4) Add delayed sports, there will be plenty of people wanting to catch their latest game, match or race after the weekend. This is enough for me to subscribe to Netflix.
Why I am a long term buyer of Netflix at $120, because Netflix management has a proven record of pivoting and innovating. They will not think twice to admit they are wrong and use technology to drive further growth, as well understand what their customers want not what they are asking for.
The only way Netflix holds onto subscribers and adds more will be to change its model. Here is my recommendation.
1) Stop dropping all series on day1, trickle episodes on a bi-weekly basis. This will create suspense and followers, it will also create a number of postings on social media where everyone is guessing the next episode. This is gold advertising for free
2) Change pricing, add an annual subscription with a 10% discount. You would be surprised how many will opt for this when their favourite show drops.
3) Stop making Ryan Reynold films, he sucks and his comedy is for the people who cancel subs...trust me, I know many douchebags who like Ryan's movie
4) Add delayed sports, there will be plenty of people wanting to catch their latest game, match or race after the weekend. This is enough for me to subscribe to Netflix.
Why I am a long term buyer of Netflix at $120, because Netflix management has a proven record of pivoting and innovating. They will not think twice to admit they are wrong and use technology to drive further growth, as well understand what their customers want not what they are asking for.