Sort of, it was essentially free money for these companies to license content that didn’t even make the Walmart DVD bin. But now that streaming has replaced cable those companies want the full revenue to make up for it.
Netflix is profitable, they have a 13% profit margin, so streaming is sustainable even with super high R&D costs.
Everyone is trying to squeeze the customer and Netflix now and I think it’s doomed to fail. Nobody buys CDs, Nobody pays for an individual Columbia Records subscription, and nobody wants to have a separate streaming service for every “channel”. Ultimately what happened to music is going to happen to TV again because it’s inefficient for these companies to all be playing greedy forever.
Was the cheap Netflix-only model really sustainable tho?
Tbh seemed too cheap from a business perspective to last long
Sort of, it was essentially free money for these companies to license content that didn’t even make the Walmart DVD bin. But now that streaming has replaced cable those companies want the full revenue to make up for it.
Netflix is profitable, they have a 13% profit margin, so streaming is sustainable even with super high R&D costs.
Everyone is trying to squeeze the customer and Netflix now and I think it’s doomed to fail. Nobody buys CDs, Nobody pays for an individual Columbia Records subscription, and nobody wants to have a separate streaming service for every “channel”. Ultimately what happened to music is going to happen to TV again because it’s inefficient for these companies to all be playing greedy forever.
13% profit is pretty small tho compared to a lot of other industries tho no?
That’s a pretty decent profit margin. Many businesses take in a lot less.
Any examples? Only things that come to mind are ones that are known for having slim profit margins, e.g. Airlines, grocery stores, etc