Netflix: Novelty In Content Drives Rich Reinvestment Cycles Of Growth


  • Netflix’s success is attributed to its deep pure-play moat and innovative advertising, allowing it to generate healthy cash flows with strong margins, perpetuating a cycle of deep reinvestments into various components of Netflix.
  • While Netflix dominates the VOD market currently, it is reaching saturation in the US. Netflix needs to focus on sub-retention and expanding into other regions for further growth.
  • Shareholders must be wary of investment risks such as the rise of generative AI and increased competition from Netflix’s larger competitors.
  • That being said, AI is both a risk factor and opportunity. Whichever streaming service can integrate such technologies into its own production first will have an immense advantage.

Netflix, Amazon Prime Video, Paramount+, Disney+, HBO Max and Hulu app icon on screen

Robert Way

Just 1.5 years ago, Netflix’s (NASDAQ:NFLX) stellar run had come to a halt – stock prices fell greatly from its $690 high in Oct 21 to $175 in Jun 22. However since then, NFLX has regained its footing and stock prices rose back

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