The biggest media companies in the world have concluded that they can’t beat Netflix
It’s tempting to say that they shouldn’t bother: Why not let Netflix beat itself?
That’s what happened this afternoon, when
The worry for investors is that Netflix’s crazy growth streak may be at an end, even though those five million new subscribers bring the company’s total to 130 million worldwide. Netflix’s financials – and, crucially, its nosebleed stock price – are predicated on many years of crazy growth to come.
Hastings and his lieutenants didn’t say much to persuade doubters on their earnings call this afternoon.
“We strive for accuracy,” shrugged Netflix CFO
But it’s doubtful that
That’s because all of those mergers and would-be mergers are being justified, in part, by the fact that Netflix has figured out how to sell a wildly popular video subscription service direct to consumers over the internet. And the big media guys are way behind.
And it’s not just that Netflix has a big lead. It’s that the new conventional wisdom, spelled out by
Who else can get there? Think Amazon
So even if you’re a media mogul who thinks Hastings and his guys are wrong, and that Netflix is hitting a wall, you have to be prepared to take on the most powerful companies in tech. And in your heart of hearts, you don’t think you are.
That’s why you’re selling. And that’s why you’re not letting yourself feel that good about today’s news.
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