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lofties

Netflix needs to realize, if it hasn't already, that it's not a technology company, but a production company.

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They need to be priced as one.

Netflix PE ratio is 47x.

Paramount is 8x.

Universal is 12x.

What’s the likelihood of any of those 3 companies pivoting and offering a fundamentally new entertainment experience?

My money would be on Netflix. They’ve done it at least twice already; it’s in their DNA.

They realized it three or four years ago when big players started pulling content.

Why do you think they've been investing so heavily in their own content?

'"The goal," says Sarandos, "is to become HBO faster than HBO can become us." '

That was Ted Sarandos, Chief Content Officer of Netflix in 2013, so they 'realized' at least a decade ago.

They've really pivoted amazingly from dvds to streaming other folks content to creating their own in the last 20ish years.

Yeah, a lot of people seem to be defaulting to "Netflix didn't see this obvious thing" rather than "competing with Disney is ridiculously hard even if you have the smartest executives on the planet".

Investing in their own content would not support them being a technology company.

Is it? They could (hypothetically, for the sake of argument) pivot to become a PAAS for the competitors (exit the streaming market, offer to today's competitors a superior/cheaper underlying technology, let them watch fight among themselves for who get what series while they provide the plumbings)

Their major competitors already have functioning platforms of their own.

While Netflix level performance is difficult, getting 90% there is a lot easier today than 10 years ago. And 90% there seems to be fine for consumers as long as the content is there

I think there would be a market for that, but not one that justifies a $230 billion valuation. It would be virtually impossible for Netflix to pursue a strategy like that because they would be admitting defeat and taking a loss for their shareholders.

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