I’m torn on Netflix. They are clearly a great company, but the content spend worries me. Billions of dollars are spent every year, but what will be the long-term benefit. From a surface glance, the content seems transient. I just don’t see where the $20B that is being spent materially helps them in the future. It clearly helps them right now, but I want more than a company focusing on today. I want a company building for the future.
Essentially what I’m waiting for is autocatalysis. Success begets success. If their content takes off, it will lead to success in so many other areas. Developing franchises underneath them (like Disney) will lead to easier paths into gaming, apparel, NFTs and maybe even Netflixland (get it?… Disneyland but with Netflix).
Maybe Netflixland is a dumb idea but that doesn’t mean that lasting content won’t be the key for Netflix unlocking its next stage as a company. I’m not long Netflix right now, but I am curious. I might be able to get a great company at a discount as people freak about MAUs, but ignore autocatalytic reactions happening right before their eyes.