I have been analyzing Netflix during the last months. Not just analyzing as a Fundamental Investor way, but also as a Netflix user.
Over the last time they have been making changes on the business model.
As a Netflix's user I have found that every time I want to watch a film/serie and enter to Netflix, I never find it on the catalog. So, in January I decided to cancel my subscription.
Obviously Netflix knows it so they have been trying to become a content producer. In my opinion all the content they made is not of high quality. I know that this is a personal opinion.
But, let's enter in the business model discussion. I think that when companies that are owners of the films/series (the best content, coincidentally) decided to took their content off Netflix, Netflix have lost their competitive advantage.
If you sell film/series and the content is not the best, is matter of time before you start getting users off.
And they not just are pivoting to a content-producer model, they are trying to pivot to ads business model (that for definition needs masses of people). But, in my opinion they will lose users. So, if they will lose users, the ads business model will fail.
Here you can see more about my opinion Image-Summary of my opinion
What do you think about Netflix?
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