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.
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.
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 UA-cam. 😊
I canceled in like 2020 and have not been back since. I do not feel like I am missing out. I have HBO, Hulu, Disney, and Paramount. There's only so much entertainment a person can view. Not to mention Tubi has some bangers now.
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.
A friend at work got the 5.99 package . The only difference is a small 30 second ad every 60 mins , the catalog is the exact same , but you can't download . I never did anyways. Snag the 5.99 per month package and give it a go. Worth the try.
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
That's true, but those sites oftentimes have both lower quality on the content (video quality) and a lower quality user interface. Most people will grumble about the price increase, but they'll keep paying.
@@Antares-vj7suSo.... When you have parents, two people, using Netflix but their numerous children NOT using Netflix and NOT buying it for their children, you're not having a business of cradle-to-grave like Coke or Walmart.
@@thecapone45 He still have people in his family watching Netflix. If any family will have at least a netflix subscription, that's a hell of a business, I mean it's a laghauble argument saying "I don't watch netflix but my parents do so it's a shitty business" do you even hear yourself?
@@thecapone45 I got it and it's just nosense, sons and daughters will have a Netflix access avaible at anytime when they are bored in a rainy night with high probability of getting hooked and will make a subscription for themselves if they move away. Coke is a completely different type of business, less risk, less gains it's like comparing apple with orange.
@@E-XODIAIn reality it’s the customers who treat Netflix like an indispensable item on their budget. And Netflix (knows it)😂😂😂 is cashing in on their MOAT
I canceled my subscription at the end of 2022. I was grandfathered in at a low price. In 2022 I moved and when I changed my address on my Netflix account it took me out of being grandfathered in without any warning of price change. I didn't watch it much anyway so I canceled.
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
there is only so much they can increase before people turn to pirating or billions of free websites out there that uploads movies or series as soon as it comes out
The threat of everyone cancelling Netflix and then them gaining subscribers is a yearly cycle. I'm sure we'll discuss how everyone is cancelling again next year.
@@JosephCarlsonAfterHours while I agree they have pricing power now, the more they abuse it the higher likelihood people will in fact cancel. So Id say its a double edge sword. I can tell you I personally I am ok without Netflix I shared an account for a long time and then when they cracked down I stopped watching netflix. Now I get to keep that monthly cost and invest it somewhere else and I can just watch youtube for free. Win Win.
Joseph, I love your videos and I have now joined you on Patreon / Qualtrim too. So thank you for those 2 fantastic products you’ve put out for all of us! 👍🏼😊 I also have a question about how the percentage is calculated on Qualtrim. I’ll use your Netflix position in this video as an example. So you’re up $16,225 on Netflix however it says your position is $62,184 and up 77.08%. However, 77.08% of $62,184 = $49,931 not $16,225. And $16,225 is 26.09% of $62,184. What I’m saying, is the numbers you have don’t seem to match unless I’ve completely misunderstood it. Could you please explain it to me? Thanks and please keep up the great content!
There are different ways to measure this. Time weighted and dollar weighted. I don't remember which is which or exactly how it works. The only thing I understand between them is a specific scenario. Buy $100 worth of something. It grows to $200. You sell (half) back down to $100. What is your return? On one you made 100% of what you put in. The other one has an issue; you made $100 of a $0 investment. This would be an infinite return. In this case only 1 is a useful measurement.
the broker interest is to keep you hooked, so they will pick which ever calculation method shows the highest % so you feel you are making huge profits, which I think is time weighted return. A simple calculation like you described would show total return which is a lower %
This is a more complex question than you think. What you're suggesting is to show simple returns (total value vs gains %). That may seem like an easy solution. But what happens if I sell all of my Netflix position and only have $1,000 of ownership of the company, and $16,000 in gains. Based on the simple returns calculation Netflix would then become a 16 bagger in my portfolio. That's not really an accurate way to portray the returns is it. With simple return calculation your return % goes up as you sell a stock and it goes down as you buy more of it. Because your gains are a smaller percentage if you buy and a larger percentage if you sell of the total holding. So obviously that's not a perfect solution. So brokerages come up with two ways of illustrating returns that track your own going rate of return with the stock, which is time weighted and money weighted. Both of them have pros and cons but both try to track rate of return rather than just your current return based on your latest deposits / withdraws. For my performance metrics I ultimate track it with time-weighted return because it's what most brokerages (and hedge funds/investors like buffett) use.
As an investor I understand the appeal of pricing power. Yet, there is a part of me that is also thinking like yes pricing power is great but there's plenty of companies that take advantage of it. They know they have a great thing, and they know they can get away with it, which is a different type of motivation than staying ahead of costs and inflation and keeping the margin the same. So with netflix raising it in quick succession in a short amount of time just gives me a bad taste and makes me think of the second scenario that they're just kind of dicks about it.
I get where you are coming from. But some would say Capitalism is about offering a product or service and maximizing profits from willing customers (for the business owners = shareholders). That “selfish incentive” in the face of competition is what has created everything you and I consume. Every business owner wants a satisfied customer. Whenever there is a gap in the customers satisfaction (or dissatisfaction with quality or price). A competitor replaces them. Blockbuster gave way to Netflix because the customers voted with their dollars. I personally regret not being an owner of Netflix. But I am not a consumer of their services either. Best wishes
I don't think that's the right take. The price increase cadence is actually similar to their historical average over the past 10 years. And they do use the majority of price increase to reinvest back into content, growling their content spend from a few billion 10 years ago to now 17 billion per year. More importantly, most of the content spend is being afforded by additional subscribers, not price increase. Which means mathematically you're paying less per individual piece of content on Netflix now than you were 5 years ago. ($17b worth of content for $15/month is cheaper per content than $10 for $7b worth of content). To summarize - mathematically Netflix customers are paying less per content now than at any time in their history.
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 recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job . All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
I’ve got a couple of good ETFs in my portfolio and I still got other share holdings doing incredible numbers. I’m up 47% from last year! I’m also well positioned with good blue chip companies and I have stop losses in place.
Apt!! I was self-managing my portfolio but suffered heavy losses in 2022 and i knew i couldn't continue like that, so i consulted a fiduciary advisor. By restructuring and diversifying my $1.2M portfolio with dividend-paying stocks, ETFs, Mutual funds and REITs, I significantly boosted my portfolio, achieving an annualized gain of 28%.
Your invt-adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same invt-adviser and how I can get in touch with them?
She goes by Camille Anne Hector I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
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.
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 UA-cam nowadays.
I used to do this but find that it isn't very helpful. Focusing on earnings and low P/E, etc. to identify "cheap" stocks are no longer a profitable way to invest in stocks. I know. I owed them. It is ridiculous to be focusing on these "Buffett/Graham metrics" when tech stocks are proving them wrong everyday. The value investors have become the new efficient market professors: everybody is afraid to pick up the $1000 dollar bill now. Stocks shouldn't be bought bc they are too "big"? Bc they aren't "cheap" enough? Because you are still waiting for them to "dip" 20 dollars? What we have seen in the last 5 years is that the bigger are getting bigger and the small, stay small.
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 actually cancelled Netflix 2 years ago and never came back. I am perfectly fine with UA-cam and Disney+ for the Family. For MY personal use Disney+ has real pricing power (so has UA-cam) but not Netflix. In general I agree with, the one or the other streaming service will always be used, most have their favourite which they will never cancel. For me it’s Disney, for the next person it may be Netflix.
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.
You should compare the price increases with the wage increases. If you also take into account the main population that watches Netflix and evaluate their purchasing power, the price increases suddenly seem less harsh. Also, people are getting addicted to Netflix.
Yeah I’m kind of in the camp of sick of it. I’ll probably cancel as well. I don’t watch much tv. If I already had shares I would hold on to them still though
I have a branch user account off of my parents main account since my wife and I bought our house and got kicked off. I would gladly pay for my own single account or pay more than the $9.99 the add on account currently is costing. My wife and I watch at least 1 movie a week + shows... well worth the money.
I believe that business graduates thinking primarily of infinite growth rather than how they can service their customers are on an Icarus flight. While Netflix still has the best content, it has been declining rapidly for many years, and the fall can come suddenly and be dramatic. To me Netflix looks like a game studio like Blizzard of yore
You are definitely an original on the Netflix thesis. I do hope it develops for you. I have never invested in Netflix. I might buy one share just to track Netflix stock performance. I will be a customer. I have a strange loyalty to Netflix. Much better than the Blockbuster days. Alberta, Canada 🇨🇦
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.
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".
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.
as a kid my mom would never pay for streaming services but i always wanted to watch what my peers were watching so to this day i just watch shows on free websites🤣
We will see what “price” is the kicker for some consumers… but the reality is… Netflix is better than the other streaming services outside of if you want sporting events live From IP, to the growing catalogue, even the stand up, movies, cartoons etc… Netflix is by far a more integrated service with significant depth compared to the competition as it stands today
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".
I've been a netflix subscriber for years and I barely even watch it, I think cause of inflation and other costs increasing, its one of the things I'm fine with cutting.
Love the company, I sold the stock @ All time highs though. I think the valuation is a little ahead of itself, and if I want to own a company thats trading a 'rich' at risk of better returns; There are better alternatives than Netflix was my reasoning for my sell. I don't blame you for your continued ownership though Joseph, let that thing continue cooking.
Netflix just raised prices in October, if they raise again in 2024, I’m done. Netflix is a luxury, that I’ll soon be unable to afford. Everything is too expensive these days.
Like your opinions, but this seems like something to be careful with. If we seem economic deterioration, luxuries are the first to go. Netflix is a luxury, not a necessity. Granted, I do think its a "cheaper" luxury, thus is may have more staying power than most luxury purchases, but its time will come.
I have HBO Max, Disney, Prime and Netflix. I wouldn't say Netflix is far superior but I wouldn't cancel it either mainly because at the rate I binge watch shows and movies I need all 4
I don’t really care about the rise in subscription price. My main qualm with Netflix is that, in my opinion, it isn’t that great as a product. Its big selling point is being able to facilitate its own original content but I think such content is of generally low quality and ultimately not worth it for that alone. Sure, it often has quality unoriginal content in rotation too but what’s stopping other streaming services from doing the same thing, if not, better? Don’t get me wrong I still use Netflix the most out of all of my subscriptions but its moat isn’t strong enough as a long term investment.
Never watched it but had it for my family. When they pretended that I was stealing even though they promoted sharing originally I dumped them and my family members never resubscribed. I could be wrong but I feel like you are overestimating their sticky subscribers
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.
Is it “price powering” or just abusing the market? Everyone uses Netflix but instead of keeping it affordable they have the power to charge whatever because they have the best over all movie selections.
Netflix got big by disrupting legacy businesses and now they are turning into the same. Ads, high prices, mediocre content because every content producer starts their own streaming service, sharing is no longer allowed... People are going back to sailing the high seas. Netflix was good for a few years, now they think that they are too big to fail which will bite them in the long run. Innovate or die.
I don't think a Netflix dividend is very far away... The management team seems focused on keeping the annual content budget under $20 billion. If Netflix tries to offer live sports, the content budget will increase by a few billion every year. Thereafter, the management team will have no other place to spend money, except share repurchase or dividend.
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.
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.
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 canceled a couple years ago. Can't watch everything. I have AppleTV, Amazon Prime, and UA-cam 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?
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
Like some others in the comments I cancelled as well. I wasn’t using the service as much and wasn’t happy at being nicked and dimed on top of having to put up with commercials. Ialso feel like the overall quality of shows has gone down.
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.
Customers leaving Netflix is a good thing for investors, if enough customers leave to make Netflix take notice, then they’ll realize the optimal price for their service. From there if Netflix wants to earn more per subscriber then that means providing more value to the customer so that they are willing to pay the higher price! Overall, it’s good for everyone.
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.
7D chess move lol
Well said.
Congrats!
I am a Netflix subscriber; but, will not be a Netflix investor.
I do 100% agree with your investments; more than 50% of the time.
That's actually genius haha
This is why I invested in Abbvie to one day pay for my wife’s Botox 😂
My suggestion is for people to get a life and not rely on 3 or 4 subs for entertainment.
Don't rely on none of them. It's just a distraction.
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.
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 UA-cam. 😊
You are missing out.
I canceled in like 2020 and have not been back since. I do not feel like I am missing out. I have HBO, Hulu, Disney, and Paramount. There's only so much entertainment a person can view. Not to mention Tubi has some bangers now.
@@thecapone45I also have Disney, max, prime, an Hulu and I find more content on Netflix
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 just saw my monthly bill at $25 and I'm not canceling yet but I'm not really happy about it.
A friend at work got the 5.99 package . The only difference is a small 30 second ad every 60 mins , the catalog is the exact same , but you can't download . I never did anyways. Snag the 5.99 per month package and give it a go. Worth the try.
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
That's true, but those sites oftentimes have both lower quality on the content (video quality) and a lower quality user interface. Most people will grumble about the price increase, but they'll keep paying.
I cancelled my subscription. Not enough quality shows to watch worth the price increase
I haven’t watch Netflix in years. My parents are the only one that have it.
So?
@@Antares-vj7suSo.... When you have parents, two people, using Netflix but their numerous children NOT using Netflix and NOT buying it for their children, you're not having a business of cradle-to-grave like Coke or Walmart.
@@thecapone45 He still have people in his family watching Netflix. If any family will have at least a netflix subscription, that's a hell of a business, I mean it's a laghauble argument saying "I don't watch netflix but my parents do so it's a shitty business" do you even hear yourself?
@@Antares-vj7su Cool. You missed the point of what I was saying. 😎
@@thecapone45 I got it and it's just nosense, sons and daughters will have a Netflix access avaible at anytime when they are bored in a rainy night with high probability of getting hooked and will make a subscription for themselves if they move away. Coke is a completely different type of business, less risk, less gains it's like comparing apple with orange.
Netflix did raise prices in 2023. Basic and Premium rose to $11.99 and $22.99 per month in the US at the end of 2023.
I'd put Netflix in the "elastic demand" category
Agree is a non essential goods, I believe my friend thinks Netflix is like gas , electricity or water. 😂
Did you mean “Price in-elasticity”?
@@E-XODIAIn reality it’s the customers who treat Netflix like an indispensable item on their budget. And Netflix (knows it)😂😂😂 is cashing in on their MOAT
I canceled my subscription at the end of 2022. I was grandfathered in at a low price. In 2022 I moved and when I changed my address on my Netflix account it took me out of being grandfathered in without any warning of price change. I didn't watch it much anyway so I canceled.
Thank you
Bill Ackman needs to sell out of the stock again and cause a panic, so the price drops and I can scoop up more shares.
Bill definitely got Netflix wrong. 😊😊😊. Similar to Carl Icahn selling Apple in 2016.
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
Nah... you are missing out.
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.
does pricing power growth in a recession!?
Does that mean you won't be adding more NFLX to portfolio for the time being?
there is only so much they can increase before people turn to pirating or billions of free websites out there that uploads movies or series as soon as it comes out
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
Wait, I saw this video of yours a year ago. Deja vu.
The threat of everyone cancelling Netflix and then them gaining subscribers is a yearly cycle. I'm sure we'll discuss how everyone is cancelling again next year.
And I will be there to listen to you and support you!
@@JosephCarlsonAfterHours while I agree they have pricing power now, the more they abuse it the higher likelihood people will in fact cancel. So Id say its a double edge sword. I can tell you I personally I am ok without Netflix I shared an account for a long time and then when they cracked down I stopped watching netflix. Now I get to keep that monthly cost and invest it somewhere else and I can just watch youtube for free. Win Win.
Joseph, I love your videos and I have now joined you on Patreon / Qualtrim too. So thank you for those 2 fantastic products you’ve put out for all of us! 👍🏼😊 I also have a question about how the percentage is calculated on Qualtrim. I’ll use your Netflix position in this video as an example. So you’re up $16,225 on Netflix however it says your position is $62,184 and up 77.08%. However, 77.08% of $62,184 = $49,931 not $16,225. And $16,225 is 26.09% of $62,184. What I’m saying, is the numbers you have don’t seem to match unless I’ve completely misunderstood it. Could you please explain it to me? Thanks and please keep up the great content!
he kept buying more along the way, so the percentages are wrong
There are different ways to measure this. Time weighted and dollar weighted. I don't remember which is which or exactly how it works. The only thing I understand between them is a specific scenario. Buy $100 worth of something. It grows to $200. You sell (half) back down to $100. What is your return? On one you made 100% of what you put in. The other one has an issue; you made $100 of a $0 investment. This would be an infinite return. In this case only 1 is a useful measurement.
the broker interest is to keep you hooked, so they will pick which ever calculation method shows the highest % so you feel you are making huge profits, which I think is time weighted return.
A simple calculation like you described would show total return which is a lower %
This is a more complex question than you think.
What you're suggesting is to show simple returns (total value vs gains %). That may seem like an easy solution. But what happens if I sell all of my Netflix position and only have $1,000 of ownership of the company, and $16,000 in gains. Based on the simple returns calculation Netflix would then become a 16 bagger in my portfolio. That's not really an accurate way to portray the returns is it. With simple return calculation your return % goes up as you sell a stock and it goes down as you buy more of it. Because your gains are a smaller percentage if you buy and a larger percentage if you sell of the total holding. So obviously that's not a perfect solution.
So brokerages come up with two ways of illustrating returns that track your own going rate of return with the stock, which is time weighted and money weighted. Both of them have pros and cons but both try to track rate of return rather than just your current return based on your latest deposits / withdraws. For my performance metrics I ultimate track it with time-weighted return because it's what most brokerages (and hedge funds/investors like buffett) use.
@@JosephCarlsonAfterHours Thanks for your explanation Joseph. It is really helpful.
I never bought Netflix (asa consumer) due to price. And they increased prices and o am even less likely to subscribe
They have a $7/month tier for price sensitive customers that is growing quickly.
Price? A theatre ticket is 10$ minimum, cable tv is 50$ what are you even talking about
@@Antares-vj7suand an internet connection and the high seas is F.R.E.E
As an investor I understand the appeal of pricing power. Yet, there is a part of me that is also thinking like yes pricing power is great but there's plenty of companies that take advantage of it. They know they have a great thing, and they know they can get away with it, which is a different type of motivation than staying ahead of costs and inflation and keeping the margin the same. So with netflix raising it in quick succession in a short amount of time just gives me a bad taste and makes me think of the second scenario that they're just kind of dicks about it.
I get where you are coming from. But some would say Capitalism is about offering a product or service and maximizing profits from willing customers (for the business owners = shareholders). That “selfish incentive” in the face of competition is what has created everything you and I consume. Every business owner wants a satisfied customer. Whenever there is a gap in the customers satisfaction (or dissatisfaction with quality or price). A competitor replaces them. Blockbuster gave way to Netflix because the customers voted with their dollars. I personally regret not being an owner of Netflix. But I am not a consumer of their services either. Best wishes
I don't think that's the right take. The price increase cadence is actually similar to their historical average over the past 10 years. And they do use the majority of price increase to reinvest back into content, growling their content spend from a few billion 10 years ago to now 17 billion per year.
More importantly, most of the content spend is being afforded by additional subscribers, not price increase. Which means mathematically you're paying less per individual piece of content on Netflix now than you were 5 years ago. ($17b worth of content for $15/month is cheaper per content than $10 for $7b worth of content).
To summarize - mathematically Netflix customers are paying less per content now than at any time in their history.
I had already cancelled my premium sub from Netflix.
Chungus amongus 😏
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 recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job . All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
I’ve got a couple of good ETFs in my portfolio and I still got other share holdings doing incredible numbers. I’m up 47% from last year! I’m also well positioned with good blue chip companies and I have stop losses in place.
Amazing well done! Which companies have performed best for you?
Apt!! I was self-managing my portfolio but suffered heavy losses in 2022 and i knew i couldn't continue like that, so i consulted a fiduciary advisor. By restructuring and diversifying my $1.2M portfolio with dividend-paying stocks, ETFs, Mutual funds and REITs, I significantly boosted my portfolio, achieving an annualized gain of 28%.
Your invt-adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same invt-adviser and how I can get in touch with them?
She goes by Camille Anne Hector I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
There is a limit to what people can take.
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.
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 UA-cam nowadays.
I used to do this but find that it isn't very helpful. Focusing on earnings and low P/E, etc. to identify "cheap" stocks are no longer a profitable way to invest in stocks. I know. I owed them. It is ridiculous to be focusing on these "Buffett/Graham metrics" when tech stocks are proving them wrong everyday. The value investors have become the new efficient market professors: everybody is afraid to pick up the $1000 dollar bill now. Stocks shouldn't be bought bc they are too "big"? Bc they aren't "cheap" enough? Because you are still waiting for them to "dip" 20 dollars? What we have seen in the last 5 years is that the bigger are getting bigger and the small, stay small.
I cancelled my subscription last year and never went back.
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”?
This is one account that I have t renewed in a decade. Shared the password for awhile but since the crackdown haven’t signed up for my own
That literally means nothing to Netflix's bottom line. You weren't paying for it to begin with so they lost $0 when they lost you.
This also increases their TAM and lowers their cost of delivering content to people who are not paying.
Netflix is included in my T-Mobile plan and I still don’t watch it.
I actually cancelled Netflix 2 years ago and never came back. I am perfectly fine with UA-cam and Disney+ for the Family. For MY personal use Disney+ has real pricing power (so has UA-cam) but not Netflix.
In general I agree with, the one or the other streaming service will always be used, most have their favourite which they will never cancel. For me it’s Disney, for the next person it may be Netflix.
Hi Joseph, we want to see your 3rd portfolio, where you have Patreon and UA-cam gains.
I still have it mainly due to my kids. I hardly ever watch it. It’s definitely on the chopping block
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.
We dont see it at Twitter 😂
My girlfriend would break up with me if I cancelled Netflix
Time to buy their stock😂😂😂
Netflix's make-or-break year is when they release The last season of Stranger Things last. Period.
You should compare the price increases with the wage increases. If you also take into account the main population that watches Netflix and evaluate their purchasing power, the price increases suddenly seem less harsh. Also, people are getting addicted to Netflix.
Yeah I’m kind of in the camp of sick of it. I’ll probably cancel as well. I don’t watch much tv. If I already had shares I would hold on to them still though
I have a branch user account off of my parents main account since my wife and I bought our house and got kicked off. I would gladly pay for my own single account or pay more than the $9.99 the add on account currently is costing. My wife and I watch at least 1 movie a week + shows... well worth the money.
I believe that business graduates thinking primarily of infinite growth rather than how they can service their customers are on an Icarus flight. While Netflix still has the best content, it has been declining rapidly for many years, and the fall can come suddenly and be dramatic. To me Netflix looks like a game studio like Blizzard of yore
No longer
We canceled ours a few months ago. Because of cost.
I sold 1/3 of my holdings and making average cost lower, next selling target would be $650.
You are definitely an original on the Netflix thesis. I do hope it develops for you.
I have never invested in Netflix. I might buy one share just to track Netflix stock performance.
I will be a customer.
I have a strange loyalty to Netflix.
Much better than the Blockbuster days.
Alberta, Canada 🇨🇦
I hardly watch Netflix but my roommate does so we keep it.
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.
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".
I haven't watched tv or any streaming service in 5 years, only have a tv for gaming
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.
as a kid my mom would never pay for streaming services but i always wanted to watch what my peers were watching so to this day i just watch shows on free websites🤣
you look good in dark colors!
Between the woke content and foreign programming, pricing should be the least of their worries! The ROI keeps getting weaker and weaker!
We will see what “price” is the kicker for some consumers… but the reality is… Netflix is better than the other streaming services outside of if you want sporting events live
From IP, to the growing catalogue, even the stand up, movies, cartoons etc… Netflix is by far a more integrated service with significant depth compared to the competition as it stands today
We actually did cancel Netflix after another price hike. Content just isn't worth it anymore.
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".
Our french laughing stock..
People said the same thing with the password sharing crackdown. It is just poor losers online who won't do shit about it
Between Netflix and UA-cam you could easily be entertained for many lifetimes !
I've been a netflix subscriber for years and I barely even watch it, I think cause of inflation and other costs increasing, its one of the things I'm fine with cutting.
I think you will look back on this stock in 2 years and wish you had trimmed here. Prime will eat thier lunch long term.
If Netflix raises prices again I am leaving them. And I am currently in the ad plan
*i wouldn't sell NFLX anytime soon, this baby's gonna continue to go up and up through the end of the year!* 🤑
Love the company, I sold the stock @ All time highs though. I think the valuation is a little ahead of itself, and if I want to own a company thats trading a 'rich' at risk of better returns; There are better alternatives than Netflix was my reasoning for my sell. I don't blame you for your continued ownership though Joseph, let that thing continue cooking.
Netflix just raised prices in October, if they raise again in 2024, I’m done. Netflix is a luxury, that I’ll soon be unable to afford. Everything is too expensive these days.
I cancelled Netflix because of price increases, plenty of other streaming options. I spend most of my time on YT and prime vid at this point
Like your opinions, but this seems like something to be careful with. If we seem economic deterioration, luxuries are the first to go. Netflix is a luxury, not a necessity. Granted, I do think its a "cheaper" luxury, thus is may have more staying power than most luxury purchases, but its time will come.
Obviously not Tesla 😂
I have HBO Max, Disney, Prime and Netflix. I wouldn't say Netflix is far superior but I wouldn't cancel it either mainly because at the rate I binge watch shows and movies I need all 4
I don’t really care about the rise in subscription price. My main qualm with Netflix is that, in my opinion, it isn’t that great as a product. Its big selling point is being able to facilitate its own original content but I think such content is of generally low quality and ultimately not worth it for that alone. Sure, it often has quality unoriginal content in rotation too but what’s stopping other streaming services from doing the same thing, if not, better? Don’t get me wrong I still use Netflix the most out of all of my subscriptions but its moat isn’t strong enough as a long term investment.
I don't watch Netflix and have never paid for it but I don't really watch any TV except live sports
Never watched it but had it for my family. When they pretended that I was stealing even though they promoted sharing originally I dumped them and my family members never resubscribed. I could be wrong but I feel like you are overestimating their sticky subscribers
I feel like you are overestimating anecdotal evidence
Since they've done password sharing crackdown they've gained 20 million subscribers.
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.
Is it “price powering” or just abusing the market? Everyone uses Netflix but instead of keeping it affordable they have the power to charge whatever because they have the best over all movie selections.
Netflix got big by disrupting legacy businesses and now they are turning into the same. Ads, high prices, mediocre content because every content producer starts their own streaming service, sharing is no longer allowed...
People are going back to sailing the high seas. Netflix was good for a few years, now they think that they are too big to fail which will bite them in the long run. Innovate or die.
No different than what cable was for people back in the 00s. I’d rather have real tv anyway. Streaming is exhausting.
Do you think Netflix will ever pay a dividend?
I don't think a Netflix dividend is very far away...
The management team seems focused on keeping the annual content budget under $20 billion. If Netflix tries to offer live sports, the content budget will increase by a few billion every year.
Thereafter, the management team will have no other place to spend money, except share repurchase or dividend.
@@Anonymous_Lee19
😊 META was a surprise!
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.
I was a Netflix sub for 20+ years, going back to when they mailed out dvd’s in red envelopes. I quit over their support of soft child porn - “Cuties”.
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.
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
You were wrong about Disney. I think you’re wrong about this. Most of their content is trash
I’ll never cancel my Netflix. They are still an amazing value
I canceled a couple years ago. Can't watch everything. I have AppleTV, Amazon Prime, and UA-cam 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?
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
Like some others in the comments I cancelled as well. I wasn’t using the service as much and wasn’t happy at being nicked and dimed on top of having to put up with commercials. Ialso feel like the overall quality of shows has gone down.
F Netflix and its woke trash shows and it’s garbage password policies.
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.
BINGO!!!😊😊😊 YOU NAILED IT. The key word = competition.
Competition in quality of product delivered and Competition in price.
Customers leaving Netflix is a good thing for investors, if enough customers leave to make Netflix take notice, then they’ll realize the optimal price for their service. From there if Netflix wants to earn more per subscriber then that means providing more value to the customer so that they are willing to pay the higher price! Overall, it’s good for everyone.
Buy Tubi. 😂
This will increase their churn . I know I will be cancelling . May rejoin next winter been w them for years
🇺🇸 We just subscribed to Netflix and today FEB 29th purchase 100 shares of NVDA 😊
First!
Beat me by 16 seconds!
Comment for the algo
I dont flinch at their price increases. I would probably pay $25 a month. Its the only non-youtube streaming service I watch daily.
I cancelled Netflix and subscribe Prime
I canceled, people I know canceled last year. Overpriced!