Posted on 04/24/2019 10:29:32 AM PDT by C19fan
Netflix Inc. is expected to price its latest debt offering later Wednesday, a $2 billion offering of junk bonds that comes at a risky time for the streaming giant.
Netflix NFLX, -1.89% is burning through cash at a fast pace and its outlook is less certain, given the pending competition from two major new entrants to the streaming market, Disney Co. DIS, +1.31% and Apple Inc. AAPL, +0.10%
“We are concerned a misstep in its growth trajectory, while cash burn continues to mount, could result in material downside for Netflix bonds,” CreditSights analysts Mary Pollock and Jay Mayers wrote in a commentary. “Investors looking at the new issue need to consider this scenario, in our view.”
(Excerpt) Read more at marketwatch.com ...
Everyone and their Dog has a Streaming Service today
The wonderful thing about our zero-interest rate, printed-money economy - you do not need to actually make money. You only need either 1) political and government support, or 2) vast social acceptance
I dropped it because of their content. I don’t like much if any of these new blah blah dialog / porn / shock / dialog shows.
There just aren’t that many decent actors out there. It’s like all the shows are generated by algorithm.
It is junk. Peak viewing is now. When Gen X ages and stops binge watching and Gen Z becomes the coveted demo - they game, and game, and game, and watch very little tv, and have since the start, so reboots will mean nothing to them .
There is a vast amount of money to be lost on streaming services other than long shorts.
Seems to me you’d just as well light your money on fire
“The wonderful thing about our zero-interest rate, printed-money economy...”
Nowadays, the estimated 6% interest rate on these new Netflix bonds makes them “junk”, notwithstanding the other poor financials that company has.
Netflix is very concerned that once Disney+ starts in December 2019, that will be the end of their monetary “gravy train.” I wouldn’t be surprised if other studios signs a major deal so their video libraries are streamed through Netflix.
I read “streaming giant” as “steaming giant” and was looking for the next word.
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