Sunday, July 16, 2017

Netflix Content Assets Valued at $11 Billion

As of March 2017, the net value on Netflix’s service is $11 billion, more than Time Warner and even the combined assets of Viacom, Discovery, Scripps and AMC. Netflix is also up for 92 Emmy nominations, second only to HBO.

What’s interesting about these numbers is that while Netflix may be valuable, it only pulls in $1 of revenue per dollar of net content value vs. $2-$4 among traditional entertainment companies. Since Netflix does not sell advertising, marketers should keep an eye out for any changes in the Netflix business model. If they decide to become more profitable, advertising is the company’s next logical step, and it will provide a major opportunity for advertisers. Although Netflix has promised to double the amount of original content to increase their subscriber base, they are facing increasing competition from Snapchat/Time Warner, Apple TV, WhatsApp original scripted series and more. 

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