Coronavirus vs Investing

[you&me]

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Right but when Netflix has the new avengers movie, clearly they aren’t buying that outright. I figured those were loss leaders to attract new viewers and wondered if essentially paying the producers as if their users rented them ( ie per use ) would be a way to do that without forking our major cash in advance.

Good point and that's not something that was foreseen in this article a year ago about theatrical releases being forced to digital. I'm not sure how that's handled, but anything like an Avengers release is a relatively unique situation in the world of Netflix content. I would imagine it would be similar to the traditional studio/theatre set up where the studio takes their massive cut and the theatre (in this case Netflix) takes what's left... Like you said, the film is almost like a loss-leader as the theatres do with concessions.

[bigboom]

When Netflix was licensing Disney movies for showing there was articles saying that NFLX was paying DIS $200-$300mm/year for that content which is cheap considering a movie like Bright cost them $90mm to make.

[A790]

Timely: https://www.reddit.com/r/PersonalFin...oday_not_sure/

[pheoxs]

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Right but when Netflix has the new avengers movie, clearly they aren’t buying that outright. I figured those were loss leaders to attract new viewers and wondered if essentially paying the producers as if their users rented them ( ie per use ) would be a way to do that without forking our major cash in advance.

So you kind of have the right idea but thats not how it works.

Netflix internal has tons of data and projections. With all their viewing history they can fairly well estimate how popular a avengers movie will be on there compared to the other movies, the genre, overall watching, etc. So based on this they would make a licensing offer to the studio for X amount of money where they know they can still turn a profit because having it in their catalog will attract more memberships. They don't tell the studio how much its actually watched, the studio just gets their licensing fee of X$ for Y amount of time.

That being said I doubt they negotiate individual movies. They likely go to the studios and sign all of the marvel movies (pre-disney) for so many years with conditions on how long between release and when it hits netflix. Thats why you could still see some avengers movies on netflix while disney plus already launched. They're still under contract with netflix but you can bet as soon as its done they'll all get pulled.

[killramos]

As a business it would certainly be interesting to manage.

[ercchry]

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Timely: https://www.reddit.com/r/PersonalFin...oday_not_sure/

And here I am feeling bad for @msommers leaving 200% extra gains on the table on HOD today

[killramos]

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For every dollar made someone has lost the other side of the trade with these types of securities. Nature of the beast.

[Cagare]

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So you kind of have the right idea but thats not how it works.

Netflix internal has tons of data and projections. With all their viewing history they can fairly well estimate how popular a avengers movie will be on there compared to the other movies, the genre, overall watching, etc. So based on this they would make a licensing offer to the studio for X amount of money where they know they can still turn a profit because having it in their catalog will attract more memberships. They don't tell the studio how much its actually watched, the studio just gets their licensing fee of X$ for Y amount of time.

That being said I doubt they negotiate individual movies. They likely go to the studios and sign all of the marvel movies (pre-disney) for so many years with conditions on how long between release and when it hits netflix. Thats why you could still see some avengers movies on netflix while disney plus already launched. They're still under contract with netflix but you can bet as soon as its done they'll all get pulled.

Yeah, the data mining that goes into future production choices is really interesting. They are trying to determine trends as they are occurring and then push content towards that. It's hard to do that without that sort of platform and it is what Disney will start to do as well.

It's odd to remember the early days where Netflix did not have a lot of content.

[pheoxs]

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Yeah, the data mining that goes into future production choices is really interesting. They are trying to determine trends as they are occurring and then push content towards that. It's hard to do that without that sort of platform and it is what Disney will start to do as well.

It's odd to remember the early days where Netflix did not have a lot of content.

Whats crazy is if you ever visit a friends house and look through their netflix. Outside of their flagship stuff they pushed to everyone it's a completely different list of shows. different recommendations, different shows, different categories. It's so crazy to think that netflix controls what you watch by what your algorithms suggest.

[ercchry]

Nice little end of day rally for NFLX, doing a hell of a lot better than the rest of the FAANG stocks today. Tomorrow should be fun. Holding for sure

[msommers]

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And here I am feeling bad for @msommers leaving 200% extra gains on the table on HOD today

I'm happy +60% gain. And so would any sane person. Real question is what will tomorrow look like...

But yeah betting your entire life savings like that with all those other factors he mentioned like a baby, inheritance money etc...

[ercchry]

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Nice little end of day rally for NFLX, doing a hell of a lot better than the rest of the FAANG stocks today. Tomorrow should be fun. Holding for sure

Hoooly shit, some heavy volume in after hours already! Touching $480 already

[you&me]

NFLX - 15.8mm new subscribers... Big pop!

[bjstare]

I had some May 1 $450 calls in my shopping cart this aft, then decided not to go for it. Investing in hindsight is always so easy.

[ercchry]

Set a nice and high limit sell order just in case I miss some crazy volatility when I’m sleeping in

[The_Rural_Juror]

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Set a nice and high limit sell order just in case I miss some crazy volatility when I’m sleeping in

Didn't they miss earnings? I see 434 right now. They've been steadily climbing for the past couple of weeks.

[ercchry]

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Didn't they miss earnings? I see 434 right now. They've been steadily climbing for the past couple of weeks.

Mixed bag, but Q2 expectations also increased... after hours is too volatile to read into it too much... we will see. The subscriptions was huge though

[The_Rural_Juror]

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Mixed bag, but Q2 expectations also increased... after hours is too volatile to read into it too much... we will see. The subscriptions was huge though

There's a view that they could lose those subscriptions as people return to work, or are out of work.

[ercchry]

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There's a view that they could lose those subscriptions as people return to work, or are out of work.

I don’t see the out of work thing being a bad thing for them, but also their historical retention rate is great, plus it’s Netflix... the tsla of streaming

[OTown]

Anyone else making boatloads on SHOP? I'm shocked it hasnt come up lately in this thread. One of the best Canadian companies around

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Timely: https://www.reddit.com/r/PersonalFin...oday_not_sure/

Ouch.