𝚃𝚑𝚎 𝙴𝚌𝚘𝚗𝚘𝚖𝚒𝚌𝚜 𝙾𝚏 𝙽𝙴𝚃𝙵𝙻𝙸𝚇
In
Netflix's most recent financial year the company reported a healthy operating income of more than
$6bn. That gives Netflix a decent amount of margin to work with as the company begins its efforts to get growth back on the right side of zero — if it can keep its huge
content costs from spiraling higher.
Netflix sharers and ad-haters bewareThe company did estimate that, in addition to its
~220m paying subscribers, Netflix is being shared in around
~100m households, alluding once again to the idea that the company might look to crack down more severely on account sharing.
The other avenue for growth is an ad-supported free (or just cheaper) tier. Historically
Netflix has been strongly against the idea of advertising, but the company has had a change of heart — announcing this week plans to offer ad-supported options over the next few years. No ideas are off the table now.
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