The Town with Matthew Belloni Is There a Netflix Bubble?
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Jan 27, 2025 
Lucas Shaw, a Bloomberg reporter specializing in media and entertainment, joins to analyze Netflix's impressive growth, highlighting the addition of 19 million subscribers and a soaring stock price. They discuss Netflix's challenges and potential future strategies, including expanding franchise development and live events. The conversation also covers the fierce competition in streaming and Netflix's innovative approaches to ad revenue and content production, emphasizing how it navigates a rapidly changing landscape.
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Netflix's Surprising Success
- Netflix had a surprisingly successful quarter, adding 19 million subscribers.
- Despite this, sustaining such growth seems unlikely given current market conditions.
Netflix's Ad Business Challenges
- Netflix's ad business faces challenges with lower-than-expected ad prices (CPMs).
- They need increased ad tier subscriptions and more ad inventory to achieve profitability.
Content Budget and Growth
- Netflix's large content budget and growing competition necessitate strategic investment.
- Focusing on sports, live events, and potentially acquiring UFC rights could be key growth areas.