Netflix faces a double challenge: on the one hand, the need to consolidate itself as the first in the market, while its competitors remain firm in their capture, despite the fact that Disney’s journey has been truncated before the results of its last fiscal quarter . It remains the leader, with its 213.6 million subscribers and its good financial results.
In fact, since its publication, with more openness regarding the viewings of its productions, which remain the great mystery for analysts since the company had not shown any transparency regarding its data, the value advances in the market by 7%, since last October 19.
The second challenge facing Netflix is to go beyond the astronomical results of its platform in 2020 and, above all, to retain and monetize the presence of current subscribers. One of the routes will be that of online games, of which we have already spoken. But it seems that there are directly analysts who bet on this thesis. From Evercore they consider that it could be a key future bet for Netflix, especially in Asia.
In its quotation graph we see that the value gains 3.55% in the five preceding sessions, gains 6.3% in the month, 31% in the quarter and so far this year it has risen by 25.6% to raise that percentage to 41% from November 2020.
While it seems that the new paths through which to travel also pass through a Tik Tok-like fusion of short videos, with the idea of targeting a younger audience than its usual target. We are talking about children and also adolescents, as Bloomberg recounts these days that, through his tool, Kid Clips would set small content videos for his age. It would be the second after the launch of Fast Laughs on which this new experience for the streaming platform will be based.
In short, new forms of business, while trying to deepen and rise above the current one: intensive and massive content production.
Very intensive and can be a handicap, experts say for the future, in a race without limits. 17,000 million euros is what the company announced that would be spent for this concept this year in series and films that will be released throughout the coming months.
Although a great economic deployment does not always go hand in hand with a resounding success. And if not that they tell the 21.6 million that was spent on “The Squid Game” a very low figure compared to other productions to become the most viewed in the platform’s history: 142 million people in its first month of broadcast.
In any case, the positive part is that they have announced, in their latest results, that will start producing free cash flow from 2022, with a debt that reaches 14,800 million euros. The idea is that they will not need to go to external sources of financing for working capital.