The Town with Matthew Belloni cover image

The Town with Matthew Belloni

Netflix: Unstoppable or Overvalued?

Oct 21, 2024
Lucas Shaw, a Bloomberg reporter specializing in media and entertainment, joins to unpack Netflix's latest earnings report, revealing impressive subscriber growth but looming concerns about competition and advertising. They discuss Netflix's five pressure points, including the evolving strategies to counter competitors and the risk of overvaluation. The conversation also touches on Disney's delayed succession planning and how it could impact the industry landscape. Finally, predictions about viewership for the upcoming World Series offer an exciting sports angle.
37:54

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Netflix continues to thrive with substantial international growth and a remarkable increase in subscribers, challenging doubts about its future sustainability.
  • The delayed CEO succession at Disney reflects internal uncertainties and highlights the competitive pressures facing major players in the streaming industry.

Deep dives

Netflix's Continued Growth and Market Position

Netflix has reported significant growth with nearly 283 million paid subscribers and robust earnings, beating projections across the board. The company's revenue reached almost $10 billion, and its stock price has increased over 60% this year, solidifying a market cap exceeding $300 billion. Despite concerns about slower growth due to the impact of password sharing crackdowns, Netflix continues to thrive, particularly in international markets like Europe and Asia. Still, analysts question whether Netflix's growth trajectory can sustain at this pace given the increased competition and potential pressures on future subscriber additions.

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