From today's Zero Hedge:
Blain: "FANG Becomes FAG"
by Tyler Durden
Fri, 07/19/2019 - 10:10
Blain's Morning Porridge, submitted by Bill Blain
Back in the Real World
Netflix shook markets. It was a "Wake up smell the coffee moment. It’s amazing how folk have woken up to the reality: Netflix is struggling. FANG becomes FAG. Which means Netflix’s days as a market disrupter are over.
It pioneered streaming as a business, but now is facing competitive pressures it can’t hope to beat with its current model. Its high content spending to capture subscribers appeared to be working in a competition free environment, but today’s reality is subscribers have choice where to go for quality content. Netflix’s library of classics are going back to their owners, and even they admit their current production wasn’t good enough to attract new customers. Which means they have a problem going to the market for more money to spend on more content to attract customers – who are going elsewhere.
If that all sounds a bit familiar – go remind yourself what happened to Blockbuster.
Blain: "FANG Becomes FAG"
by Tyler Durden
Fri, 07/19/2019 - 10:10
Blain's Morning Porridge, submitted by Bill Blain
Back in the Real World
Netflix shook markets. It was a "Wake up smell the coffee moment. It’s amazing how folk have woken up to the reality: Netflix is struggling. FANG becomes FAG. Which means Netflix’s days as a market disrupter are over.
It pioneered streaming as a business, but now is facing competitive pressures it can’t hope to beat with its current model. Its high content spending to capture subscribers appeared to be working in a competition free environment, but today’s reality is subscribers have choice where to go for quality content. Netflix’s library of classics are going back to their owners, and even they admit their current production wasn’t good enough to attract new customers. Which means they have a problem going to the market for more money to spend on more content to attract customers – who are going elsewhere.
If that all sounds a bit familiar – go remind yourself what happened to Blockbuster.