Author Topic: Netflix is burning through cash. This can't last forever.  (Read 655 times)

rcjordan

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Netflix is burning through cash. This can't last forever.
« on: January 18, 2019, 08:42:13 PM »
Ho-lee crap!

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The streaming service's long-term debt has quadrupled since the end of 2015 to $10.4 billion. And Netflix is sitting on content liabilities (both current and non-current) of $8.5 billion.

https://www.cnn.com/2019/01/18/investing/netflix-cash-burn-stock/index.html

ergophobe

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Re: Netflix is burning through cash. This can't last forever.
« Reply #1 on: January 19, 2019, 05:00:08 AM »
Geeze... you could build a couple walls for that price

Ba dum.

I'll be here all night

rcjordan

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Re: Netflix is burning through cash. This can't last forever.
« Reply #2 on: January 20, 2019, 07:45:01 PM »
Thanks to Hulu, Disney lost $580 million last fiscal year | TechCrunch
https://techcrunch.com/2019/01/20/thanks-to-hulu-disney-lost-580-million-last-fiscal-year/

And that was on their 30% share.  Will double (?)
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As part of Disney’s buyout of 21st Century Fox, Disney will soon own another 30 percent of Hulu.

martinibuster

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Re: Netflix is burning through cash. This can't last forever.
« Reply #3 on: January 22, 2019, 05:48:32 AM »
This is outside of my area of understanding. So the following is not a criticism. Nothing between the lines. These are not rhetorical questions in any way.

I'm just asking two questions.

I don't understand how owning 30% of Hulu caused Disney to lose over half a billion dollars. Could that be creative accounting to offset income to reduce their tax responsibilities?
« Last Edit: January 22, 2019, 07:45:49 AM by martinibuster »

rcjordan

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Re: Netflix is burning through cash. This can't last forever.
« Reply #4 on: January 22, 2019, 05:00:07 PM »
Based on our common experience here and what we've seen while watching the online marketing of pre-internet companies trying to move to the web, my best guess is that Hulu revenues suck while production & marketing costs -many based on legacy- are wildly high.  I'd bet that Hulu will eventually have to go through the same draconian restructuring that has been slicing & dicing print media.

>tax

Dunno either.

I'll keep an eye out on my feeds. 

martinibuster

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Re: Netflix is burning through cash. This can't last forever.
« Reply #5 on: January 23, 2019, 08:19:18 PM »
Disney is at war with Netflix. That's what's behind the cancellation of several popular Marvel shows on Netflix, with Disney rolling out it's own streaming competitor for Marvel based shows.

That war began because the studios were losing money from DVD sales on account of Netflix. That's why the studios started delaying new releases to Netflix.

The studios responded to Netflix by competing directly with Netflix by becoming streaming outlets. To cut Netflix out as a distribution partner.

Netflix responded by becoming a studio, because they understand the studios mean to withhold content from Netflix.

So in a way, throwing money at Hulu, while taking a hit to income, works for Disney because it keeps the pressure on Netflix to keep on spending to out-compete their rivals.

Reminds me of the way Soviet Russia went broke trying to keep up with USA military spending.

« Last Edit: January 23, 2019, 08:24:13 PM by martinibuster »

rcjordan

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Re: Netflix is burning through cash. This can't last forever.
« Reply #6 on: January 23, 2019, 10:20:49 PM »
Hulu ups price for live-TV service, cuts basic package price - ABC News
https://abcnews.go.com/Technology/wireStory/hulu-ups-price-live-tv-service-cuts-basic-60573143

Hulu reminds me of G+