NETFLIX...RUST IN PEACE?

Source img:http://www.aftvnews.com/netflix-drops-support-for-old-fire-tv-app/

Netflix has recently presented its results for the quarter, and they have left investors with a very bad taste. Despite increasing profits, black storms plan on the future of Netflix, losing 100,000 subscribers in the US, the company's home country. The Californian company, expected to win 5 million new customers worldwide, a figure that has remained at 2.7 million.

Last year, he managed to catch 5.5 million new subscribers.

This fall appears related to the new market competition, until now dominated by the almost monopoly of Netflix.

That competition is led by Disney, a company that has decided to jump into the Streaming business with its Disney + platform. This news, assists a stab in the heart of Netflix, because the platform loses all Disney content. As if that were not enough, the Mickey Mouse company will feature the 20th century Fox movies, recently acquired by the giant.

Thus, Netflix faces an enemy with an already built business and more economic resources.
Other rivals are ready to jump into the field, such as AT&T, who has recently acquired Warner Media, or Amazon, eager to enter the Streaming business, and who to disembark on its beaches states that it will apoquinate 5000 million dollars; This announcement has shaken the already stubborn legs of Netflix, which in response to anucnión, will increase its spending up to 12,000 million, 50% more than expected.

But is this viable? The numbers indicate no, as Netflix has 10300 million debt, with data obtained from April 2019.The liability is 57% higher than in the same period of 2018, and almost triples the debt of 2017.
Another fact that does not indicate optimism are Netflix cash flows, which are in negative territory. Cash flow indicates the liquidity of a business, while profits inform us about profitability. The company has problems in cash flow, because it must pay the productions in advance, accumulating about 10800 million euros of negative flow in the last 5 years.

So Netflix finds itself sinking in quicksand. They do not stop growing competitors, and the only answer of the company, is to increase the already inadvertent expense. Nor is it that it has many other possibilities.

Streaming will be a new business battlefield, and in the midst of the coming wars, it seems we already have the first fallen soldier.