Written by Ophir Gottlieb
PREFACE
Netflix Inc (NASDAQ:NFLX) has transformed the way we consume video by introducing streaming video on demand (SVOD) as a legitimate alternative to live television. Here is the good and the bad of the company's radical expansion and growth in 8 charts.
STORY
Let's start with the rather impressive revenue growth chart.
That growth has come at a cost though. Check out the strain on cash from operations in the next chart.
And further, we can examine the debt load that Netflix Inc has taken on.
And why is this happening? Well, Netflix is pushing the envelope with original content and that is costing the company a small fortune. Here is the trend in research and development expense:
TAKING A STEP BACK
Of course all of these charts miss the critical context. First, Netflix Inc (NASDAQ:NFLX) is chasing the streaming video on demand theme in technology. Here's how that looks from our friends at Statista.
And inside that trend, Netflix is expanding internationally at a frantic rate.
But this isn't just growth for growth's sake. Netflix Inc (NASDAQ:NFLX) is winning, and that's just a matter of fact. Here are consumption patterns in a chart, to start:
And finally, market share dominance in a chart:
Believe it or not, only about 50% of U.S. households have access to SVOD, so while growth in the US will slow, there's still room, even beyond the huge international expansion.
The author has no position in Netflix Inc (NASDAQ:NFLX).
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