Many point to the fact that Netflix is paying so much for new content and reruns of Friends episodes that it can’t hope to see that invested capital back again any time soon.
Others say that overall Netflix has take a long term perspective. If it is to become the only place where consumers view content, it should have it all.
And many of the long term investors considers the purchasing on content the fundamental responsibility for the company to thrive long term.
Short term however NFLX stock is way down. And getting lower by the day.
Yet with revenues coming into the company as great as $14.33 billion in the last 30 days alone, the revenues for the company is increasing.
However so is the costs of buying new content. Netflix is expanding on content from across the globe, including more from Europe this past week.
For now however Reed Hastings is choosing to look long term and seeks to become the only place where people come to watch shows and streamed content.
If this is to happen Netflix must own as much of the market share of content as it possibly can. With the view that cable TV will be dead in 2019 and more will flock to Netflix.com … and yes, to watch those Friends reruns and much more besides.