Impressive. Otherwise, you can not combine the development of Netflix in the past few months together, Alone, in the three months to end-December, the Streaming service the bottom line is that was able to record 8.8 million new paid subscription-based. In the US the home market of 1.5 million new customers were added, international 7.3 million. Thus, the total number of subscribers at the end of the year on good 139 million. So many of them as never before.
growth on everything, this is Netflix’ Motto. However, the strategy has to pay your price – in the truest sense of the word: A closer look into the quarter, the group had to account for in spite of the official earnings ($134 million) a negative cash flow in the amount of $ 1.3 billion. In the whole of the financial year, there were even three billion. That means in plain text: in Spite of the rocket growth, are liable to Netflix burns any amount of money.
The business is harder
Because of the expensive license is for a business. The series “Friends”, which ran from 1994 to 2004 on NBC, despite of their age one of the most popular on the streaming portal. Netflix wanted to take the series from the catalog, but got directly the wrath of the Fans. In the end, the group transferred approximately $ 100 million to Warner Media of the series in 2019.
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However, even with all the money in the world, Netflix can’t win on the duration of this fight. Disney and AT&T belonging to a media group, Warner Media still want to start this year with a private offer, other streaming services are withdrawn, therefore, the rights of Use. In addition to the well-known animated films of the “Star Wars” and Marvel productions are affected. Apple also prepares the entry into the series business, and secure more exclusive titles.
series solution and a Problem
in Order to make themselves independent, the company invested more in their own series, films and documentaries. So Netflix stands out from the competition. And at the same time creating a new Problem, because the productions cost a lot of money. The successful series of “Stranger Things”, their new season at the 4. July starts, the cost of each Episode up to eight million dollars. A whole season hits with 50 to 100 million to beech. In total, the current Figures show Netflix productions in the amount of nearly 20 billion (!) US dollars approved. The money must first be earned, especially as the debt should be a mountain between ten and twelve billion dollars.
In the home market in the United States, Netflix has increased therefore the prices. New subscribers up to 18 percent figures, and more, existing customers will need to grab in a couple of months deep in the pocket. Experts expect that Netflix in the short or long – is likely to raise rather short – even in other countries the prices. In Germany, the group is already testing how much customers are willing to pay. Depending on the Experiment up to 17,99 Euro / month will be required. The are four euros more than in the past. Here you can learn more.
Netflix: growth and price increases
Netflix is now in a sense at a crossroads: The group has changed the entertainment industry, was immensely successful, and called numerous imitators to the Plan. Through the success of former allies were Achern, however. The Analyst Richard Greenfield compared the group years ago with a “Monster” created by the Traditional media companies and now their own future is at risk.
In the next two years will show whether the strategy of crazy growth and regular price rises increases, or whether Netflix with the multi-billion dollar investment has been upheld.
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