The best way to hedge against ever-increasing prices in the products you use is to have an ownership stake in the companies that are raising prices on you. The $16,000 in gains I have made in Netflix so far is far more than I will ever spend on the company for entertainment.
I disagree with your analysis, in regards pricing power. The biggest mistake was done for the competition following the stupid add plan when actually their content is really bad compared to Netflix that gives Netflix and advantage on pricing their service. Is the reason why I cancelled Disney, Hulu, HBO and paramount but now I don’t have anything else to cancel to keep the rising price of Netflix and definitely I’m no willing to pay for adds that is like watching tv in a 3rd world country. So if I just cannot afford Netflix with my budget if they increase the price I will just cancel it. Like other streaming platforms, of course you as investor just want to say what you want people hear from your investing company. Will see for how long Netflix puede tirar de la cuerda como se dice en español hasta que se rompa. They are building pkgs with cellphone companies to increase their customer with a lower price as well, so no every one is actually paying the full price as well.
Ppl hating netflix because of this pricing power abuse is enough for investors to be worried about. Sure there are small number of ppls actually cancelling because enough is enough but this can balloon up in no time given the competition in streaming is fierce.
I switch from streaming service to streaming service each month depending on what content they offer. I haven't been subscribed to Netflix in over half a year. I'll subscribe next month for 1 month for the 3 Body Problem and then be off it again. Streaming is just way too expensive for me to keep them year round, even if I could afford them all at once.
Stop call the amount of money you have invested in a stock a huge position when it’s in the thousand, $1,000 is not a huge position in any stock if you having $10 Million or $100 million in a stock that’s a huge position
Investors need to understand that it is much easier to find comments like "I'm going to cancel my subscription". Hardly any subscriber is going to post a comment saying that "I'm keeping my subscription".
You will never really know the true effects of price increase until they carry it out. Especially with a non essential product like Netflix. The tipping point is not a gradual hill but more like a cliff.
Agree with what you said if Netflix is the only streaming service provider. But we have to consider there are many alternatives out there. I have already cancelled my Netflix subscription for months and not missing it at all because I have Amazon Prime and YouTube. ?
Many people watch Netflix shows on free pirated Chinese web sites. If Netflix keeps raising price, they will push more people to these Chinese websites. Pricing power is good when customers have no alternative. There are many alternatives to watch Netflix shows nowadays on different platforms for free
I canceled a couple years ago. Can't watch everything. I have AppleTV, Amazon Prime, and Youtube Premium. I will probably cancel AppleTV at some point although I am finding enough for now to justify it. I don't really watch much Amazon Prime if any. Who has time?
Theres a lot of competitors out there. Lets take Amazon for example . Amazon is known for the value that they bring to the CUSTOMER. (Hence the low profit margins)
Im not invested in Amazon, but with their business model and multiple income sources , they can scoop up some of the market share because Netflix are raising prices.
Many people in my university canceled Netflix and use free streaming sites with ad block. It’s effectively the same thing with every show and movie ever. With higher costs of living I wouldn’t be surprised if younger generations switch to this alternative.
I cancelled my Netflix subscription 2 years ago. The cost went up and up. The quality went down and down. And am not missing it and will never go back – books, friends, youtube, etc. All more interesting than Netflix
Joseph another great content. Your conviction for Netflix is obvious. Could you describe Netflix as having “price in-elasticity”? And what protects their MOAT? Could it be their “first-mover advantage”?
I cancelled my netflix like 5 years ago, never really looked back. The prices were too high and the content wasn't necessarily justified for how little I watch movies and TV.
So true, they don't really have any real competition. Best content, best service is checkmate. Of course there is always room for someone to try to compete with them but the only one that seems to really try is Amazon and they do have some good content but the service is so bad in comparison.
Here is the thing about price increases, % and frequency are key. Increasing your prices every year well above inflation is going to make you loose customers.
I know I am in the minority, but as a subscriber for 12+ years, I couldn't justify the price. I know it works for a lot of people, but when you are looking at the cutbacks you can make from your budget, this is going to the be the first thing to go. Ride it while you can
Never had Netflix and never needed it. Waste of time and money. Especially since their philosophy and values hate people like me. So it was a very easy no brainer to not give them any of my money. Plus all of western entertainment is woke progressive propaganda. Worthless trash.
Unrelated to this video: we cancelled simply because we hadn’t opened the app in months and seen anything worth watching. There’s too much good material to watch on YouTube nowadays.
I completely agree! Even if we were to have a recession, I wholly believe that most will find the spare change in their couch if it means they can continue to watch Netflix. People are addicted to their TV more than ever and netflix continued to produce content during the strikes last year which I believe will have a slow burn effect on the streaming giants competition.
According tothe local newspaper La Marseillaise even French president goes against Netflix. Indeed in the main title of the 25th February edition Emmanuel Macron denounces: "minimum wage workers prefer VOD streaming services (aka Netflix) to healthy diet".
Canceled a year ago and I don't miss it at all. They will continue to gain market share from tv in the short to medium term, but I don't believe they have a wide enough moat for it to be a great long term investment.
Where have these fools been? I don’t have any streaming service. I have YT Premium because someone else pays for it. I cancelled Netflix after the last increase and damn near cancelled Prime after they introduced ads. In the case of Prime, price has more than doubled. We are back to cable with these damn ads and high prices. Count on the poor and middle class subscribing though; they have nothing better to do.
Haven’t watched Netflix in almost a year. Don’t miss it at all. HBO Max and Hulu have more of what I like these days. Netflix has a lot of trash that doesn’t interest me.
The best way to hedge against ever-increasing prices in the products you use is to have an ownership stake in the companies that are raising prices on you. The $16,000 in gains I have made in Netflix so far is far more than I will ever spend on the company for entertainment.
I disagree with your analysis, in regards pricing power. The biggest mistake was done for the competition following the stupid add plan when actually their content is really bad compared to Netflix that gives Netflix and advantage on pricing their service. Is the reason why I cancelled Disney, Hulu, HBO and paramount but now I don’t have anything else to cancel to keep the rising price of Netflix and definitely I’m no willing to pay for adds that is like watching tv in a 3rd world country. So if I just cannot afford Netflix with my budget if they increase the price I will just cancel it. Like other streaming platforms, of course you as investor just want to say what you want people hear from your investing company. Will see for how long Netflix puede tirar de la cuerda como se dice en español hasta que se rompa. They are building pkgs with cellphone companies to increase their customer with a lower price as well, so no every one is actually paying the full price as well.
This will increase their churn . I know I will be cancelling . May rejoin next winter been w them for years
Does that mean you won't be adding more NFLX to portfolio for the time being?
My girlfriend would break up with me if I cancelled Netflix
Ppl hating netflix because of this pricing power abuse is enough for investors to be worried about. Sure there are small number of ppls actually cancelling because enough is enough but this can balloon up in no time given the competition in streaming is fierce.
I cancelled Netflix and subscribe Prime
We canceled ours a few months ago. Because of cost.
?? We just subscribed to Netflix and today FEB 29th purchase 100 shares of NVDA ?
I switch from streaming service to streaming service each month depending on what content they offer. I haven't been subscribed to Netflix in over half a year. I'll subscribe next month for 1 month for the 3 Body Problem and then be off it again. Streaming is just way too expensive for me to keep them year round, even if I could afford them all at once.
Stop call the amount of money you have invested in a stock a huge position when it’s in the thousand, $1,000 is not a huge position in any stock if you having $10 Million or $100 million in a stock that’s a huge position
I don’t need netflix when I have joseph carlson show to watch. Sold Netflix, bought youtube stock ‘GOOGL’.
Investors need to understand that it is much easier to find comments like "I'm going to cancel my subscription".
Hardly any subscriber is going to post a comment saying that "I'm keeping my subscription".
You will never really know the true effects of price increase until they carry it out. Especially with a non essential product like Netflix. The tipping point is not a gradual hill but more like a cliff.
I had already cancelled my premium sub from Netflix.
If Netflix raises prices again I am leaving them. And I am currently in the ad plan
What the hell is even a Netflix subscription? Plenty of free websites on the rare occasion i watch a movie–mostly trash these days anyway.
Agree with what you said if Netflix is the only streaming service provider. But we have to consider there are many alternatives out there. I have already cancelled my Netflix subscription for months and not missing it at all because I have Amazon Prime and YouTube. ?
Netflix meh
Many people watch Netflix shows on free pirated Chinese web sites. If Netflix keeps raising price, they will push more people to these Chinese websites. Pricing power is good when customers have no alternative. There are many alternatives to watch Netflix shows nowadays on different platforms for free
Comment for the algo
I canceled a couple years ago. Can't watch everything. I have AppleTV, Amazon Prime, and Youtube Premium. I will probably cancel AppleTV at some point although I am finding enough for now to justify it. I don't really watch much Amazon Prime if any. Who has time?
Theres a lot of competitors out there. Lets take Amazon for example . Amazon is known for the value that they bring to the CUSTOMER. (Hence the low profit margins)
Im not invested in Amazon, but with their business model and multiple income sources , they can scoop up some of the market share because Netflix are raising prices.
F Netflix and its woke trash shows and it’s garbage password policies.
Many people in my university canceled Netflix and use free streaming sites with ad block. It’s effectively the same thing with every show and movie ever. With higher costs of living I wouldn’t be surprised if younger generations switch to this alternative.
I cancelled my Netflix subscription 2 years ago. The cost went up and up. The quality went down and down. And am not missing it and will never go back – books, friends, youtube, etc. All more interesting than Netflix
Joseph another great content. Your conviction for Netflix is obvious. Could you describe Netflix as having “price in-elasticity”? And what protects their MOAT? Could it be their “first-mover advantage”?
I cancelled my netflix like 5 years ago, never really looked back. The prices were too high and the content wasn't necessarily justified for how little I watch movies and TV.
So true, they don't really have any real competition. Best content, best service is checkmate. Of course there is always room for someone to try to compete with them but the only one that seems to really try is Amazon and they do have some good content but the service is so bad in comparison.
Here is the thing about price increases, % and frequency are key. Increasing your prices every year well above inflation is going to make you loose customers.
does pricing power growth in a recession!?
Hi Joseph, we want to see your 3rd portfolio, where you have Patreon and YouTube gains.
Between Netflix and Youtube you could easily be entertained for many lifetimes !
Netflix is included in my T-Mobile plan and I still don’t watch it.
I know I am in the minority, but as a subscriber for 12+ years, I couldn't justify the price. I know it works for a lot of people, but when you are looking at the cutbacks you can make from your budget, this is going to the be the first thing to go. Ride it while you can
Never had Netflix and never needed it. Waste of time and money. Especially since their philosophy and values hate people like me. So it was a very easy no brainer to not give them any of my money. Plus all of western entertainment is woke progressive propaganda. Worthless trash.
i wouldn't sell NFLX anytime soon, this baby's gonna continue to go up and up through the end of the year! ?
Unrelated to this video: we cancelled simply because we hadn’t opened the app in months and seen anything worth watching. There’s too much good material to watch on YouTube nowadays.
I completely agree! Even if we were to have a recession, I wholly believe that most will find the spare change in their couch if it means they can continue to watch Netflix. People are addicted to their TV more than ever and netflix continued to produce content during the strikes last year which I believe will have a slow burn effect on the streaming giants competition.
I hardly watch Netflix but my roommate does so we keep it.
According tothe local newspaper La Marseillaise even French president goes against Netflix. Indeed in the main title of the 25th February edition Emmanuel Macron denounces: "minimum wage workers prefer VOD streaming services (aka Netflix) to healthy diet".
Canceled a year ago and I don't miss it at all. They will continue to gain market share from tv in the short to medium term, but I don't believe they have a wide enough moat for it to be a great long term investment.
Obviously not Tesla ?
I haven't watched tv or any streaming service in 5 years, only have a tv for gaming
Where have these fools been? I don’t have any streaming service. I have YT Premium because someone else pays for it. I cancelled Netflix after the last increase and damn near cancelled Prime after they introduced ads. In the case of Prime, price has more than doubled. We are back to cable with these damn ads and high prices. Count on the poor and middle class subscribing though; they have nothing better to do.
you look good in dark colors!
I canceled the subscription because there’s a lack of quality content. I wouldn’t mind paying their fees if the content was high quality
Haven’t watched Netflix in almost a year. Don’t miss it at all. HBO Max and Hulu have more of what I like these days. Netflix has a lot of trash that doesn’t interest me.