What's behind the good Netflix

Netflix increases in the United States, the prices for its Streaming service for New subscribers and for existing customers in a few months. You can do this, finally, the streaming portal produces incredibly a lot of content, and sometimes are located in these an incredible number of content is incredibly good content. Also on Thursday published quarterly figures seem to justify the increase in the subscription price. The company was able to increase its number of subscribers, worldwide, to 8.8 million to just under 140 million.

so Why not give it a try, what happens if you increase the prices in the U.S. by up to 18 percent?

to understand what's happening right now actually, you have to pay attention to other rows in this quarterly report, as an audience and clientele. Even on those Numbers, which are mentioned only in passing or not at all. Netflix had in the last quarter of the year, in spite of the official profit and a negative cash flow of $ 1.3 billion. In the past fiscal year, it stood at a total of three billion dollars and should be better this coming year.

below is a more interesting number, in the area of "Streaming Content Obligations": 19.3 billion dollars. It means that Netflix has already been approved productions in the amount of this sum. In the balance sheet, these must be noted if the projects are to be broadcast in the successful series Stranger Things, for example, the cost per episode of up to eight million dollars, only at the Start of the third season of the 4. July. The cost of production, however, Netflix has to pay now.

"Bird Box" is animated into a dangerous Challenge Many Netflix viewers will take the film's title, "Bird Box – Close your eyes" is currently too literally. Video: Netflix/Twitter

The company burns so quite a bit of money because it is investing heavily in its own content. In addition, Netflix gives a lot of money for the productions of other companies. The series Friends, which ran from 1994 to 2004, on the American TV channel NBC, is one of the most popular on the streaming portal. Netflix has only paid recently some $ 100 million to Warner Media, to the series 2019 in the Portfolio.

The company refers now more to the many prizes to win

Netflix is basically forced to invest more. The width media feature to be alone. However, competitors such as Hulu, HBO and Amazon Prime already lurking, and also companies with bulging coffers, such as Disney, Apple, AT&T and NBC Universal are already planning their own portals. Netflix chief Reed Hastings has meanwhile identified other opponents: "We are more likely to compete with Fortnite as HBO, and as in the past year, Youtube for a couple of minutes, is down, we experienced a huge increase in viewers and new subscribers."

Netflix has already set years ago, this fight is only with an incredible number and, if possible, high-quality content battles. The group refers more and more frequently on the many prices (23 Emmys, five Golden Globes), he wins thereby, and published the Figures of the most successful productions, in order to defend themselves against criticism. The horror movie Bird Box, for example, the many consider to be incredibly bad, went to keep their own information, according to more than 80 million households.

Netflix has revolutionized the entertainment industry, by the immense expenditure but also maneuvered to have to always continue to spend the money. The company now needs to prove, whether the strategy of the billion-dollar investment pays off and that lead to lush can Win. Whether the are an incredible number of content is actually good enough so that existing and future customers accept a price increase, is likely to show up soon. (Editorial Tamedia)

Created: 18.01.2019, 18:33 PM