What’s Netflix doing?

Inside the new and old economy.

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The whole economy is changing, and we think that some businesses could focus on the new economy. In this article, we discuss remembering our member-only episode in late 2020, where we had anticipated Netflix subscribers lost and how the company can help its subscribers be part of the new economy.

What’s Netflix doing?

It’s not my particular interest.

But it should be investor’s interest/shareholders, especially those that hold their stocks. Not?

While we used to see a massive competitivity in the old, only forgotten studios business, now we see Apple, Amazon, Disney, Warner… some of the larger companies investing in streaming businesses.

I’ve never held Netflix stocks. However, I went to a private Netflix presentation back in 2018 in the Silicon Valley and asked one question – not answered OK – that was all to me. While people present were extremely emotionalized with this huge Silicon Valley startup, I was not impressed.

Back in 2020, when nobody seemed to be asking Netflix questions but watching the show, we were here again, this time Podcasting how the entire economy twisted through the pandemic and companies needed to rethink their business models. We gave a few tips to Netflix directors; sorry if it wasn’t in English. Sometimes ideas come in another language…

Pause.

Apple can monetize insanely great.

Amazon does monetize significantly.

Disney found a new way of growing.

Some others buy and merge and, well, keep it growing.

But Netflix, how?

OK, while Jim Rohn says, “Successful people have libraries. The rest have big-screen T.V.s.” Some may say the richer own books while the poor have a bigger T.V. screen. We think that a Screen can be handy, like what Apple does. Screens everywhere, watch your watch, watch your book, and the like. 

But we don’t believe Screens solve everything.

Why?

Our approach prefers to see “Screen Watchers” as a part of the old economy where the world is measured by productivity (G.D.P.) where people need to escape the routine to chill and watch as a refuge from their duties? Life? 

We see a new type of economy. The building of a new economy. If you can make more with less, you are efficient like nature. The new economy is efficiency instead of productive. Take Uber as an example. Each user can be a member/driver, and each interaction can bring more to the Uber platform. Still, its members can get more to their lives—a second or third income. 

Therefore if you are a Netflix watcher, you are not producing anything unless you are learning something useful, becoming more independent and efficient.

In the old economy, we measure productivity (G.D.P.), while in the new economy, we will measure efficiency.

How can Netflix increase people’s efficiency? What about Netflix buying Udemy, MasterClass, or other learning platforms?

Netflix lost a ton of subscribers. Will they use their consumers to monetize new products? How? What’s Netflix’s mission and core business? Is it a Studio or an Internet business?

Contributor to this essay: Fabs Martins.

Stay tuned.

More to come.

Marcelo

About the author: Marcelo Marini

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