How #Netflix, Inc. Really Creates Value

“In the past three years, streaming video pioneer Netflix (NASDAQ:NFLX) has gone from being an apparent wash-out to being one of the most important media companies in the world. Its market cap has exploded from as low as $3 billion to a peak of more than $50 billion this summer, though it has since pulled back a bit to $42 billion.”

AND THIS, “What sets Netflix apart is its deep understanding of how much each piece of content is worth, its ability to spread content costs over tens of millions of subscribers, and its ability to find audiences for niche programming. These are the advantages that could make Netflix worthy of its massive valuation.”

YEAH, NOT HAVING TO PAY RESIDUALS ON CONTENT IS A BIG ONE…

via The Motley Fool… http://www.fool.com/investing/general/2015/09/30/how-netflix-inc-really-creates-value.aspx

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