Netflix: To Improve Economic Outcomes and Business Model Changes, Content Must Improve
whitebrook.substack.com
This week, Netflix started trialing advertising between shows on its service. The development is predictable, necessary, and will become widespread. A paradigm shift is underway where content libraries have declining values. Historically, there’s been a tendency for many investors and the public to view media studios and networks as virtually undifferentiated assets. Whether a show was on ABC, NBC, CBS, or FOX, was basically inconsequential for a long-term investor - the assets were similar, the relative ratings of the networks were cyclical, and therefore they could be valued within a range.
Netflix: To Improve Economic Outcomes and Business Model Changes, Content Must Improve
Netflix: To Improve Economic Outcomes and…
Netflix: To Improve Economic Outcomes and Business Model Changes, Content Must Improve
This week, Netflix started trialing advertising between shows on its service. The development is predictable, necessary, and will become widespread. A paradigm shift is underway where content libraries have declining values. Historically, there’s been a tendency for many investors and the public to view media studios and networks as virtually undifferentiated assets. Whether a show was on ABC, NBC, CBS, or FOX, was basically inconsequential for a long-term investor - the assets were similar, the relative ratings of the networks were cyclical, and therefore they could be valued within a range.