April 25, 2018
This streaming service finally raised some of the cash they needed very recently. Their stock has been taking a beating. because the money cost them alot more than their investors expected - just as predicted.
The service grabbed all the cash they could, for now. They had to borrow at junk bond rates, for the first time.
Problem is, the cash was only about enough to fund about 6-8 months of their projected cash burn this year.
The cost of borrowing even more money would be quite prohibitive.
So what happens to their stock price the next time they need cash, and where do they get it from?
Netflix
This streaming service finally raised some of the cash they needed very recently. Their stock has been taking a beating. because the money cost them alot more than their investors expected - just as predicted.
The service grabbed all the cash they could, for now. They had to borrow at junk bond rates, for the first time.
Problem is, the cash was only about enough to fund about 6-8 months of their projected cash burn this year.
The cost of borrowing even more money would be quite prohibitive.
So what happens to their stock price the next time they need cash, and where do they get it from?
Netflix
I still don't get why they don't raise their prices a bit. They have to know we'd pay $3 more a month.
ReplyDeleteI'd be happy if they stopped the shitty original content, raised their prices, and streamed good stuff.
ReplyDeleteI'm just absolutely stunned at this reveal Hedge, my jaw dropped almost to the floor. Stock price up .27% today, looks like it's waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaayyyyyyyyyyy up for the year too, so sorry Hedge, so, so sorry.😎
ReplyDeleteLet's be honest, Mr Hedge is posting anti-Netflix blinds on a site with commenters who love binge watching tv shows and movies. Of course everyone is going to hate his guts.
ReplyDeleteThis reveal is 1000% incorrect. It isn't Netflix as they are loaded with cash and their stock price is $314 per share as of May 2nd and has gone up from $191 to start the year.
ReplyDeleteNot a surprise as 90% of the stuff on here is either made up or incorrect.
But they did issue junk bonds last week Jade that was reported the day this b.s. was written by Hedge.
ReplyDeleteI assume this is Sandler's fault? Just because, that's why.
ReplyDeletebetter start watching all the netflix content I care to, I am not down with increased pricing or their demise.
You almost had them Mr. Hedge, if it weren’t for those meddling kids.
ReplyDelete@sandybrook it's always entertaining how you still believe nothing is rigged and everything is real. They'll get the next infusion where they all do, China, etc.
ReplyDelete@Unknown, Just like the Hollywood studios! :)
ReplyDeleteThe blind said that Netflix was doing junk bonds for the first time and that is an outright lie as well. They did this multiple times before, as recently as last October.
ReplyDeleteIf Netflix keeps putting out crap like the recent Adam Sandler/Chris Rock movie, their cash flow is gonna really dry up. Why wouldn't Sandler and Netflix even TRY to make it good? Is Sandler a investor in Netflix?
ReplyDeleteDef. Netflix. I agree, raise your rates! I watch it constantly, I don't have cable, it IS my cable. I'd pay double what it costs now and not even blink. Also, if they stop people from password sharing, they'd probably sell more accounts - my best friend has been on my account, across the country, for years. She'd buy it for herself, if she had to, but I don't mind her using it. I know more people who use Netflix who don't pay for it, than people who do.
ReplyDeleteAnd, they're putting out some good stuff, the new Lost In Space is surprisingly excellent.
This blind could easily be about Hulu, too, they're burning through massive amounts of cash in the same way Netflix is, but nobody at CDAN has an axe to grind with them, I guess.
Hear,hear! I'm on my brother's account ;)
DeleteNetflix needs to get its house in order, the spaghetti method of throwing money at the wall won't be enough. Amazon and Disney are coming for it HARD. Disney is a juggernaut and Amazon Prime just paid for a LOTR series and a Wheel of Time series, they're loaded for bear.
ReplyDeleteHulu needs to upgrade it's code. That shit is buggy as hell. Still use it, but suspect that Spectrum is trying to do in Hulu to win back us cord cutters.
ReplyDeleteOn the other hand, Netflix works seamlessly over any issues Spectrum, Comcast, or ATT might have with them.
If Netflix keeps buying shows like Casa de Papel (excellent btw) for latinos, they will expand just fine and make their debt payments. They are obviously going to increase pricing and I doubt anyone is going to mind all that much. It's still less than Time Warner used to increase prices arbitrarily, or any other cable company.
There are some really good spanish language shows on Netflix. I would love to see more.
DeleteNetflix is incredibly overated. I find Amazon Prime far superior for movies, and I only got Netflix because of Breaking Bad
ReplyDeleteI have Amazon Prime & I don't like it.
ReplyDeleteApple is buying back some of its stock, claiming it is undervalued.
This blind makes sense for Netflix. They were at a high of 331 points in March, but something happened in April and the stock did take a beating. They went down to 280. They went up a bit but are down again at 313. Netflix is heavily leveraged because it spends a lot of its cash reserves on producing original content. To keep those shows on stream costs many millions of dollars. Additionally, this has to be tempered against the large amount of hidden money that was allegedly recently borrowed. This money will eventually have to be repaid.They recently increased their subscription rates to offset some of this. Netflix is also in an extremely competitive industry against companies like Amazon and Sony. There are only so many subscribers to go around. Either they're going to find a way to increase the number of subscribers or they're going to have to keep raising the subscription fees.
ReplyDeleteJeff Bezos and Sony and friends have endlessly deep pockets. Reed Hastings, I'm not so sure about.
I wish Netflix would put out more DVDs of their series. I'm old school & like to have the really good ones on DVD. Preferably with extras.
ReplyDeleteI'm on Amazon Prime & it's okay. Wouldn't do Prime for just faster shipping though. When I went to cord cutting (where I live technically it was ending the no choice of DISH or DirecTV because I am that rural) I got in at $79 / year and that was okay.
I liked the old disc rental version of Netflix but was subscribed to a rival that has since gone bust.
I would pay more for Netflix if they actually had decent shows. I cancelled my subscription after all the Sandler and Scheumer because fuuuuck that. Just seeing Amy's pink little pig face every time I went on Netflix was enough fuel for a thousand nightmares.
ReplyDeleteAgree. I have been debating whether to cancel bc I can never find anything to watch in netflix anymore
ReplyDeleteFunny, I've never seen Schumer on my Netflix recommendations or anywhere really.
ReplyDeleteMust be you, orangesoda. Netflix has figured out how much you luuuuv Amy.
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ReplyDeletePlot, I cancelled my Netflix subscription a long time ago. So whatever point you're trying to make is invalid.
ReplyDeleteI misread. Let me elaborate. I cancelled when all I saw was Schuemer and Sandler, despite never watching any of their shows. This was a while back.
ReplyDeleteIs mr Hedge someone who got fired by Netflix or something? A disgruntled former employee?? I wonder how many blinds on this site come from vengeful people lol.
ReplyDeleteWell bring back ash vs evil dead for season 4 and I'll be happy to pay $3 more a month. I'm so sad 😣
ReplyDelete