NETFLIX END OF HOLLYWOOD

Investors love BIG technology firms for their stellar growth and vast ambition FAANG group of
technology, comprising of Facebook, Amazon, Apple, Netflix and Google, is worth more than the whole
of the FTSE 100. Among the giants, Netflix is a clear exception to this mix of soaring share prices and
suspicion. NETFLIX produces more entertainment output than any TV network and more feature films
than any Hollywood studio. It serves around 125m household and eating up a fifth of the world’s
downstream internet bandwidth. Unlike other tech Giants, it has wrought its transformation without
triggering a public or regulatory backlash. Its soaring share price means it is as popular with investors as
it is with consumers. It has more subscribers outside America than inside, covering from Mexico to India.
Unlike other Tech Giants Netflix follows subscription model means that the firm does not rely on selling
user’s data to outsiders instead, it offers customers a monthly fee in return for content they want to
watch. company has amassed $8.5bn of debt and free cashflow is expected to remain negative for some
time. That strategy will pay off if Netflix can raise prices while continuing to add subscribers—26m in the
12 months. Here, is a final lesson that applies to Netflix, and all tech firms. To keep consumers,
regulators and politicians happy over the long term, there is no substitute for competition.