Netflix faces a double challenge: on the one hand, the need to consolidate as the market leader, while its competitors remain firm in their capture, despite the fact that Disney’s journey was truncated before the results of its last fiscal quarter. It remains the leader, with its 213.6 million subscribers and its good financial results.
Indeed, since its publication, with more openness to viewings of its productions, which remain the great mystery of analysts since the company had not shown any transparency on its data, the market value has increased by 7% since October 19.
The second challenge facing Netflix is to go beyond the astronomical results of its platform in 2020 and, above all, to retain and monetize the presence of current subscribers. One of the paths will be that of online games, which we have already discussed. But it seems that there are directly analysts who rely on this thesis. Since Evercore, they consider that this could be a key future bet for Netflix, especially in Asia.
In its quotation chart we see that the stock gains 3.55% over the five previous sessions, gains 6.3% over the month, 31% over the quarter and so far this year it has increased by 25.6% to increase this percentage to 41% from November 2020.
If it seems that the new paths to travel also pass through a fusion of short videos à la Tik Tok, with the idea of targeting a younger audience than its usual target. We are talking about children and also teenagers, as Bloomberg is telling these days, thanks to its tool, Kid Clips would put up small videos of content for his age. This would be the second after the launch of Fast Laughs on which this new experience for the streaming platform will be based.
In short, new forms of business, while trying to deepen and rise above the current one: intensive and massive content production.
Very intensive and can be a handicap, experts say for the future, in a race without limits. 17,000 million euros, that’s what the company announced that would be spent on this concept this year in series and films that will be released in the coming months.
Even if a great economic deployment does not always go hand in hand with a resounding success. And if not that they say the 21.6 million that were spent on “The Squid Game“ a very low figure compared to other productions to become the most watched in the history of the platform: 142 million people from its first month of broadcast.
In any case, the positive side is that they announced, in their last results, which will start producing free cash flow from 2022, with a debt of 14,800 million euros. The idea is that they will not need to resort to external sources of financing for working capital.
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