- Forum Clout
- 123,049
sigh it’s a tough one manIt's just such a bizarre take. He presents Netflix as a company that "doesn't make any money", but can afford to pay all 12,000 employees while spending billions on content.
I don’t think the implication is everyone at Netflix is running around burning documents trying to hide the Mossad money thats running out. I think it’s on it’s way out. Companies, unless they are literally frauds, don’t just go from having billions to 0$ overnight. It makes a long time for the money to dry up and it’s usually predated by wasteful spending and retarded ideas. Lets look at something like Bed Bath and Beyond, right? Shitty comparison but hear me out: Dead company, currently bankrupt. But if you looked at their balance sheet in the year prior you would probably say “Oh they still have money.” They were making revenue and they were spending like hell. But the spending didn’t match up to their profits or debt and it caused a complete spiral. They couldn’t pay bills to get products on shelf, which drove down sales, which drove down revenue, which drove down profits which drove down the stock. Now start back from “couldn’t pay bills” and it repeats itself until the stock is at 0$.
Now inserting Netflix into that scenario: They’re putting their movies in the library for higher costs than other companies. These movies aren’t making the money they want it to. They keep spending trying to turn the company around and explore new options. Eventually they can’t pay their residuals, which drives down content, which drives down revenue, then profits, then share prices. And back to exploring new options and unable to pay residuals.
Look at something like Reddit even. Unprofitable. Something like 1000+ employees and spending like hell trying to get an IPO. Why are they spending so much and have so much employees if they’re unprofitable??
I don’t know the point being made here.You don't wanna pay Westworld residuals? Cool. I don't get paid for work I already got paid for 8 years ago either.