Saturday, May 18, 2019

How is Netflix alive with so much debt

Don't be fooled. Netflix will be insanely profitable in just 12 years.

Netflix currently profits $550 million with 137,000,000 users.
One year ago, Netflix had 109 million. Two years ago, Netflix had 87 million. Since 2014, Netflix has seen 25.5% Year-Over-Year growth in subscriber numbers.
Analysts are predicting that profit will increase faster than subscriber growth but let’s just assume profit grows as fast as subscribers over the next couple years.
  1. In 2019, Netflix will generate $690M.
  2. $866M in 2020.
  3. $1.09B in profit in 2022.
Let’s fast forward. By 2030, Netflix will be generating $6.65 billion in profit. By 2035, the number rises to $20.7 billion.
After 38 years, Netflix has the possibility of a $20.7B profit.
In contrast, Disney has a $12B profit after 95 years.

Netflix has very strong financials and very strong growth. No other media company has the growth potential that Netflix does. Netflix has a unique business model unlike anyone else and this allows for them to scale incredibly fast and increase profit at a record pace.

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