"FANG" becomes "FAG"

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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.



"Money won is twice as sweet as money earned."



Folks, this post is not about homosexuality. It's about Facebook, Amazon, Netflix, and Google ("FANG"), which are now referred to as "FAG", because Netflix stock is starting to plummet, so it's out of the top tech stocks...



That's a shame - Netflix has produced some great content (Mindhunter is a personal favorite). I guess the people who produced the content would just go elsewhere and continue doing what they do.
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That's a shame - Netflix has produced some great content (Mindhunter is a personal favorite). I guess the people who produced the content would just go elsewhere and continue doing what they do.
Yes, they sure have! Although it would be interesting to see the ratio of fluff to their good stuff. The fact is that they've simply overextended-- to the tune of billions. Real companies in the real market can't run on credit alone, in contrast to the U.S. Federal Govt. Nor can they print money as does the Federal Reserve.

Now when Disney+ and others muscle into their market, Netflix will have to get real inventive........ business wise.

~Doc



Although it would be interesting to see the ratio of fluff to their good stuff.
Made me curious to see what all they've done.
Quite a list.

The only one worthy of an eye-roll from me so far has been "Dear White People". Haven't gotten near the end of the list though.

I wonder if productions are starting to cost as much as buying distribution rights.



Made me curious to see what all they've done.
Quite a list.

The only one worthy of an eye-roll from me so far has been "Dear White People". Haven't gotten near the end of the list though.

I wonder if productions are starting to cost as much as buying distribution rights.
Good Lord! What a gargantuan list. Yeah, they'll not be able to keep up that mass of production.

I read the title Dear White People, and just assumed it was another reverse-racism porn flick, like so many others littering up the releases from the past several years. They've been milking that cow since 1960. Stoking racial animosity and SJ is big business.

Good point about production vs. distribution. Maybe Yoda or one of our industry folks would have a good answer for that. My guess is that production costs are the lion's share of their expenditures.

~Doc



You ready? You look ready.
It's OK because I will still love them no matter what. No judgement zone.
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