Netflix stock fell 35% today. That is an enormous enormous drop. Sure, it might bounce from here but the drop was well deserved.
Netflix was the original powerful streaming service. It felt like nobody could beat it. They were spending over $10 billion a year on content to keep out competitors.
The problem is: that is chump change for Apple, Amazon, and even Disney, HBO, Hulu and others.
Right now, probably the most critically acclaimed show on TV is "Severance" on Apple TV. Not only a great story but a director/producer like Ben Stiller, and actors like Christopher Walken, John Turtorro, Patricia Arquette, etc.
Great content is a commodity. You can't buy a stock because of it.
But, to misquote Mark Twain, business history doesn't repeat but it rhymes. We've seen this story before and it gives clues as to what Netflix should do.
Netflix was the original powerful streaming service. It felt like nobody could beat it. They were spending over $10 billion a year on content to keep out competitors.
The problem is: that is chump change for Apple, Amazon, and even Disney, HBO, Hulu and others.
Right now, probably the most critically acclaimed show on TV is "Severance" on Apple TV. Not only a great story but a director/producer like Ben Stiller, and actors like Christopher Walken, John Turtorro, Patricia Arquette, etc.
Great content is a commodity. You can't buy a stock because of it.
But, to misquote Mark Twain, business history doesn't repeat but it rhymes. We've seen this story before and it gives clues as to what Netflix should do.
1. 1980 HBO
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They also started having original content in the form of sports (particularly boxing) and later edgy TV shows they became famous for.
