Sean D. Emory
COTW: WHO WATCHES NETFLIX?
It's Friday, so it is time for the Avory Chart of the Week!
Netflix has taken the US by storm, but how is it positioned globally.
Netflix has crushed it in the US, setting off a flurry of adapting business models from most of the major content creators and distributors. Content is more valuable today than ever as distribution is more accessible across the globe, and across platforms. Reed Hastings, the CEO of Netflix has executed flawlessly in the US, capturing 44% of the market as of 2017. The next leg of growth will be an international expansion, which in total already has more combined subscribers than the US. However, another way to look at it is the share of each market which Netflix has captured. Three of their top five markets are English speaking, which makes sense as there is less of a need for unique content. Reed Hastings has said "sleep" is their biggest competition at the moment, but with the significant rise in content budgets, we think their balance sheet should be a worry.
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
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