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1/ The bull argument for $NFLX's tech advantage has 2 parts:
1) advantage of scale, boasting radically more subscribers than any other platform
2) largest repository of user data, which it can use to better understand & meet the desires of subscribers https://finance.yahoo.com/news/netflix-better-platform-tech-fend-225021274.html
1) advantage of scale, boasting radically more subscribers than any other platform
2) largest repository of user data, which it can use to better understand & meet the desires of subscribers https://finance.yahoo.com/news/netflix-better-platform-tech-fend-225021274.html
2/ A skeptic might argue that $NFLX's technological advantage is overstated. However, on Nov. 26, Andrew Rosen, a former Viacom digital media executive, took to Twitter to offer an “insider” view that spoke favorably of this tech advantage thesis: https://twitter.com/aagave/status/1199211752988332032
3/ There can be little doubt that Netflix does indeed enjoy a degree of technological advantage that could prove difficult – and certainly expensive and time-consuming – to replicate. But does that really even matter? $NFLX $DIS $AMZN $AAPL https://finance.yahoo.com/news/netflix-better-platform-tech-fend-225021274.html
4/ $NFLX bulls often seem to labor under the impression that, for a rival to succeed, it must be able to replicate what NFLX has already created. However, this is simply not the case.
5/ For streaming platforms like Disney+, there doesn't appear to be anywhere near as great a need to invest so heavily in granular targeting & content-matching tech. The $DIS library is well known and much beloved, making matching & targeting fundamentally less important. $NFLX
6/ $NFLX's whole approach may be suspect. If it still can't turn a substantial profit, despite market conditions more favorable now than they are ever likely to be again, it does not bode well for the company, or its business model.
7/ Comparative advantages are critically important to firms operating in a competitive environment. However, not all advantages are created equal. In the case of $NFLX, its considerable lead in platform tech may not be worth much in the scheme of things. https://twitter.com/AlmingtonCap/status/1200572543788355584
8/ For media firms, content is king. As more and more content producers migrate their content to other platforms, $NFLX will struggle to replenish its content library, especially as licensing the most desirable series and IP becomes increasingly costly. https://twitter.com/HedgeyeComm/status/1189560127780769798
9/ $NFLX has reached scale via huge cash burn. It's spent billions licensing, producing & marketing content. But scale has failed to translate into economic advantage. A technological edge can be valuable, but it simply is not what makes a great media co. https://finance.yahoo.com/news/netflix-better-platform-tech-fend-225021274.html
