KennethHi
2021-03-18
love netflix
Netflix’s Scale Is The Key To Its Profitability<blockquote>Netflix的规模是其盈利的关键</blockquote>
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Since then, many players have joined the space - and you can’t blame them, the model of on-demand streaming is more streamlined (pardon-the-pun) and scalable than traditional distribution methods. It has provided those with valuable intellectual property such as movies and TV shows a new and efficient way to monetize these assets.</p><p><blockquote><h3><b>•Netflix的战略是达到规模，然后创建自己的内容</b></h3><h3><b>•其图书馆正在向原创内容转变</b></h3><h3><b>•随着规模的发挥，净利润率正在扩大</b></h3>点播流媒体是<a href=\"https://laohu8.com/S/AONE\">一</a>21世纪最具竞争力的行业之一。<b>Netflix</b><b><u>纳斯达克：NFLX</u></b><b>)</b>是2007年推出“立即观看”服务的先驱。从那以后，许多玩家加入了这个领域——你不能责怪他们，点播流媒体的模式比传统的分发方式更加精简（原谅双关语）和可扩展。它为那些拥有电影和电视节目等有价值的知识产权的人提供了一种新的有效方式来将这些资产货币化。</blockquote></p><p> Some expect the on-demand streaming industry to reach 2 billion users by 2025, which would be a 65% increase from 2020 figures.</p><p><blockquote>一些人预计，到2025年，点播流媒体行业的用户将达到20亿，比2020年的数字增长65%。</blockquote></p><p> Being the first mover 14 years ago has allowed Netflix to get a headstart in acquiring users and building its market-leading user base of 204m. However, this lead will not be easy to maintain. In this piece, we want to cover Netflix’s strategies to get where it is today, how it could maintain its lead and what that will do to the business’ economics.</p><p><blockquote>作为14年前的先行者，Netflix在获取用户和建立2.04亿市场领先的用户群方面取得了领先地位。然而，这种领先优势并不容易保持。在这篇文章中，我们希望介绍Netflix实现今天的战略、如何保持领先地位以及这将对企业的经济效益产生什么影响。</blockquote></p><p> <h2><b>Netflix’s strategy</b></h2> Netflix is a streaming service for content. Its strategy was simple: grow its subscriber base to reach scale quickly by distributing quality content through a great user experience. Then, once it reaches scale, create its own content to become less reliant on external studios and allow itself to generate higher margins through fixed production costs rather than variable licensing fees.</p><p><blockquote><h2><b>奈飞的策略</b></h2>网飞是一个内容流媒体服务。它的策略很简单：通过出色的用户体验分发高质量的内容，扩大用户群以快速达到规模。然后，一旦它达到规模，创建自己的内容，减少对外部工作室的依赖，并允许自己通过固定的制作成本而不是可变的许可费产生更高的利润。</blockquote></p><p> In the early days, this content was all licensed from other studios that actually owned the rights. Netflix paid them licensing fees and, before the company had scale, it was at the mercy of these content providers. Until Netflix was to reach scale (a large enough paying user base), this model typically benefitted the content owners more than the content distributors.</p><p><blockquote>在早期，这些内容都是从其他实际拥有版权的工作室那里获得许可的。Netflix向他们支付了许可费，在公司形成规模之前，它受到了这些内容提供商的摆布。在Netflix达到规模（足够大的付费用户群）之前，这种模式通常比内容分销商更有利于内容所有者。</blockquote></p><p> That’s why in 2013, when the company reached 34m paying subscribers, it began to generate its own content. One of its first productions was the hugely successful and award-winning <i>House of Cards</i>. As the company has continued to grow its user base, it has continued to create its own content in house. By February 2021, when Netflix surpassed 204m paying subscribers, the company reportedly had around 1,500 Netflix original titles, which was roughly 10% of its total international library of 15,000 titles.</p><p><blockquote>这就是为什么在2013年，当该公司的付费用户达到3400万时，它开始生成自己的内容。它的第一部作品之一获得了巨大的成功并获奖<i>纸牌屋</i>随着该公司用户群的不断增长，它继续在内部创建自己的内容。据报道，到2021年2月，当Netflix的付费用户超过2.04亿时，该公司拥有约1,500部Netflix原创图书，约占其国际图书馆15,000部图书总数的10%。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ea2c3b3b37fcfc1064cfda24c06d0284\" tg-width=\"1122\" tg-height=\"1006\"><span>Source: Netflix</span></p><p><blockquote><p class=\"t-img-caption\"><span>来源：Netflix</span></p></blockquote></p><p> Since Netflix has now reached scale and established a market leading position, it needs to continue doubling down on the second part of its strategy to maintain that lead, which is: make more of its own content.</p><p><blockquote>由于Netflix现在已经达到规模并建立了市场领先地位，它需要继续加倍努力实现其战略的第二部分以保持领先地位，即：制作更多自己的内容。</blockquote></p><p> <h2><b>Maintaining its lead</b></h2> It’s <a href=\"https://laohu8.com/S/AONE.U\">one</a> thing to generate a lead, but it’s another to maintain it. Since there’s plenty of streaming options out there such as Disney+, Amazon Prime, Youtube Premium, and users are spoilt for choice. However, while these consumers have a vast array of content at their fingertips, not all of it is “great” content and they only have so much spare time to consume it. That’s why Netflix’s goal is for consumers to “choose Netflix in their moments of free time”. To do this, Netflix knows it needs to provide unique content that is more appealing than others, and deliver it through a seamless user experience.</p><p><blockquote><h2><b>保持领先地位</b></h2>这是<a href=\"https://laohu8.com/S/AONE.U\">一</a>产生销售线索是一回事，但保持销售线索是另一回事。因为有很多流媒体选项，如Disney+、Amazon Prime、Youtube Premium，用户的选择太多了。然而，虽然这些消费者手边有大量的内容，但并不是所有的内容都是“伟大的”内容，他们只有这么多的空闲时间来消费这些内容。这就是为什么Netflix的目标是让消费者“在空闲时间选择Netflix”。要做到这一点，Netflix知道它需要提供比其他内容更有吸引力的独特内容，并通过无缝的用户体验来交付。</blockquote></p><p> Since the company seems to have the user experience mostly in order, a lot of its focus has been on growing the amount of unique content it serves, especially its originals. And we can see Netflix’s shift in spending in the company's cost of revenue expense and the company’s content assets.</p><p><blockquote>由于该公司的用户体验似乎基本正常，因此它的大部分重点都放在增加其提供的独特内容的数量上，尤其是原创内容。我们可以看到Netflix在公司收入支出成本和公司内容资产方面的支出转变。</blockquote></p><p> Netflix’s cost of revenue is its primary expense and was $15.2bn for 2020 (61% of revenue). Two thirds of this ($10.8bn) is made up of the amortization of its content assets.</p><p><blockquote>Netflix的收入成本是其主要支出，2020年为152亿美元（占收入的61%）。其中三分之二（108亿美元）由其内容资产的摊销组成。</blockquote></p><p> Amortization is a method for writing off the cost of the content over its useful life, rather than incurring the cost up front. On average, over 90% of Netflix’s licensed or produced content is amortized over 4 years. So for example, on average, a $100m license fee for a TV show might be amortized at $25m per year over 4 years instead of all at once.</p><p><blockquote>摊销是一种在内容的使用寿命内冲销其成本的方法，而不是预先产生成本。平均而言，超过90%的网飞许可或制作内容在4年内摊销。例如，平均而言，一个电视节目1亿美元的许可费可能会在4年内以每年2500万美元的速度摊销，而不是一次全部摊销。</blockquote></p><p> The chart below shows just how much amortization of content has occurred leading up to 2019 as well as cash spend on content.</p><p><blockquote>下图显示了截至2019年的内容摊销金额以及内容上的现金支出。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cf9c9277c0f8a9fba4bf1fb9d9b5e3c5\" tg-width=\"1508\" tg-height=\"818\"><span>Source: Next Level Finance</span></p><p><blockquote><p class=\"t-img-caption\"><span>资料来源：下一级财经</span></p></blockquote></p><p></p><p> You’ll notice the cash spend column beside the amortization column. Cash spend is recorded in the statement of cash flows and represents the money Netflix spends upfront to produce its own content. Importantly, this disparity between the two columns reflects that the company is spending more on producing its own content since cash spend is increasing at a faster rate than amortization.</p><p><blockquote>您会注意到摊销列旁边的现金支出列。现金支出记录在现金流量表中，代表Netflix为制作自己的内容而预先花费的资金。重要的是，两栏之间的差异反映出该公司在制作自己的内容上花费更多，因为现金支出的增长速度快于摊销。</blockquote></p><p> For 2020, content amortization reached $10.8bn and cash spend reduced to $12.5bn, but it was still higher than the amortization expense.</p><p><blockquote>2020年，内容摊销达到108亿美元，现金支出减少至125亿美元，但仍高于摊销费用。</blockquote></p><p> This transition of increasing spend on original content then shows up in the company’s content assets split too.</p><p><blockquote>这种增加原创内容支出的转变也体现在公司的内容资产分割中。</blockquote></p><p> In 2016, the company had $11bn worth of content assets, which was split between 86% licensed content, and 14% original content. However, by 2020, content assets reached $25bn and the split was now 54% licensed to 46% original. This shift is helping the company become less at risk of studios pulling their content, because it has more of its own to showcase.</p><p><blockquote>2016年，该公司拥有价值110亿美元的内容资产，其中86%为授权内容，14%为原创内容。然而，到2020年，内容资产达到250亿美元，现在54%是授权的，46%是原创的。这种转变有助于该公司降低工作室撤回其内容的风险，因为它有更多自己的内容可以展示。</blockquote></p><p> Releasing and owning unique titles such as Stranger Things, House of Cards, The Crown, The Witcher, or The Queen’s Gambit are crucial for Netflix to maintain its lead. It gives their existing users all the more reason to keep their subscriptions as new titles like these are released, and it gives prospective users all the more reason to sign up if they want to view these exclusives.</p><p><blockquote>发行和拥有独特的游戏，如《奇异事物》、《纸牌屋》、《王冠》、《巫师》或《女王的策略》，对于网飞保持领先地位至关重要。随着像这样的新游戏的发布，它给了他们现有的用户更多的理由保持他们的订阅，它给了潜在用户更多的理由注册，如果他们想查看这些独家新闻。</blockquote></p><p> This transition to original content is helping the company build its own moat by becoming less reliant on external providers. As Netflix becomes both the producer and distributor of a larger portion of its content library, this creates a lot of operating leverage and thus helps the company’s bottom line.</p><p><blockquote>这种向原创内容的过渡正在帮助该公司通过减少对外部提供商的依赖来建立自己的护城河。随着Netflix成为其大部分内容库的生产商和分销商，这创造了大量的运营杠杆，从而有助于公司的利润。</blockquote></p><p> <h2><b>How this impacts the economics</b></h2> The positive financial impact of reaching a huge operating scale in a business like Netflix cannot be understated. Additionally, the expansion of originals in its content library exaggerates the positive effects that scale has on the company’s bottom line. This effect can already be seen over the last five years, and analysts expect this to continue over the next five.</p><p><blockquote><h2><b>这对经济有何影响</b></h2>在像网飞这样的企业中达到巨大的运营规模所带来的积极财务影响不可低估。此外，其内容库中原创作品的扩展夸大了规模对公司利润的积极影响。这种影响在过去五年中已经可以看到，分析师预计这种影响将在未来五年持续下去。</blockquote></p><p> In 2016, net profit margins were only 2.1% but reached 11% in 2020. This is thanks to the 120% increase in paying subscribers (to 204m) and the aforementioned increase in fixed cost original content. Looking forward, analysts expect further growth in revenue and earnings thanks to more subscriber growth and an increase in original content as a percentage of total titles. By 2025, the company is expected to double revenue to $51bn and increase earnings more than 4-fold to $12bn, which would result in further net margin expansion to 23.5%.</p><p><blockquote>2016年，净利润率仅为2.1%，但2020年达到11%。这要归功于付费用户增长120%（达到2.04亿）以及上述固定成本原创内容的增长。展望未来，分析师预计，由于订户数量的增加以及原创内容占总标题百分比的增加，收入和盈利将进一步增长。到2025年，该公司预计收入将翻一番，达到510亿美元，盈利将增长4倍以上，达到120亿美元，这将导致净利润率进一步扩大至23.5%。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/90dda28b7a97c864def67fed7695916e\" tg-width=\"1702\" tg-height=\"1186\"><span>Source: Earnings and Revenue Growth Forecasts - NASDAQ:NFLX - Simply Wall St</span></p><p><blockquote><p class=\"t-img-caption\"><span>资料来源：盈利和收入增长预测-纳斯达克：NFLX-Simply Wall ST</span></p></blockquote></p><p> It should be noted that while Netflix will need to continue creating its own content to remain relevant and satisfy user demand, its scale is now at a stage where this is affordable.</p><p><blockquote>应该指出的是，虽然Netflix将需要继续创建自己的内容以保持相关性并满足用户需求，但其规模现在处于可承受的阶段。</blockquote></p><p> Additionally, with this leading scale, those studios that do license their content to Netflix (because they don’t have a streaming platform of their own) will either have to start one of their own from square one and find users to make it economical, or look for a better license deal from a different streaming service (which might be difficult given Netflix is the biggest and likely able to pay them the most).</p><p><blockquote>此外，凭借这种领先的规模，那些将其内容授权给网飞的工作室（因为他们没有自己的流媒体平台）要么必须从头开始创建自己的流媒体平台，并找到用户以使其经济，要么从不同的流媒体服务中寻找更好的许可协议（这可能很困难，因为网飞是最大的，可能能够向他们支付最多的费用）。</blockquote></p><p> <h2><b>Summing it up</b></h2> Netflix’s core focus for a long time has been its subscriber growth since this is key to becoming profitable. The company’s growing investment into originals is aimed at acquiring even more users, and its vast library of titles is used to retain them. Both its scale and unique content help to solidify the company’s moat and let it generate more profit from each piece of content. Analysts expect that this trend of user growth and original content creation will continue, and as a result, growth in Netflix’s top and bottom line is expected to persist out to at least 2025.</p><p><blockquote><h2><b>总结一下</b></h2>Netflix长期以来的核心关注点一直是用户增长，因为这是盈利的关键。该公司对原创作品不断增长的投资旨在获得更多用户，其庞大的图书库被用来留住他们。其规模和独特的内容都有助于巩固公司的护城河，让其从每条内容中产生更多利润。分析师预计，这种用户增长和原创内容创作的趋势将持续下去，因此，Netflix的营收和利润增长预计将至少持续到2025年。</blockquote></p><p> While all of this growth is impressive, it did come with some strings attached. Netflix levered up and by 2020 year end it had $16bn in debt. Our company report on Netflix contains a full breakdown of the company’s financial health and its ability to fund the debt.</p><p><blockquote>虽然所有这些增长令人印象深刻，但它确实伴随着一些附加条件。Netflix提高了杠杆率，到2020年底，其债务已达160亿美元。我们关于Netflix的公司报告包含了该公司财务健康状况及其为债务融资能力的完整明细。</blockquote></p><p></p>","source":"lsy1616055508394","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix’s Scale Is The Key To Its Profitability<blockquote>Netflix的规模是其盈利的关键</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix’s Scale Is The Key To Its Profitability<blockquote>Netflix的规模是其盈利的关键</blockquote>\n</h2>\n<h4 class=\"meta\">\n<p class=\"head\">\n<strong class=\"h-name small\">Simply Wall St.</strong><span class=\"h-time small\">2021-03-18 16:21</span>\n</p>\n</h4>\n</header>\n<article>\n<p><h3><b>• Netflix's strategy was to reach scale, then create its own content</b></h3> <h3><b>• Its library is shifting towards original content</b></h3> <h3><b>• Net margins are expanding as scale takes effect</b></h3> On-demand streaming is <a href=\"https://laohu8.com/S/AONE\">one</a> of the most competitive industries in the 21st century. <b>Netflix (</b><b><u>NASDAQ:NFLX</u></b><b>)</b> was the pioneer back in 2007 with its “Watch Now” service. Since then, many players have joined the space - and you can’t blame them, the model of on-demand streaming is more streamlined (pardon-the-pun) and scalable than traditional distribution methods. It has provided those with valuable intellectual property such as movies and TV shows a new and efficient way to monetize these assets.</p><p><blockquote><h3><b>•Netflix的战略是达到规模，然后创建自己的内容</b></h3><h3><b>•其图书馆正在向原创内容转变</b></h3><h3><b>•随着规模的发挥，净利润率正在扩大</b></h3>点播流媒体是<a href=\"https://laohu8.com/S/AONE\">一</a>21世纪最具竞争力的行业之一。<b>Netflix</b><b><u>纳斯达克：NFLX</u></b><b>)</b>是2007年推出“立即观看”服务的先驱。从那以后，许多玩家加入了这个领域——你不能责怪他们，点播流媒体的模式比传统的分发方式更加精简（原谅双关语）和可扩展。它为那些拥有电影和电视节目等有价值的知识产权的人提供了一种新的有效方式来将这些资产货币化。</blockquote></p><p> Some expect the on-demand streaming industry to reach 2 billion users by 2025, which would be a 65% increase from 2020 figures.</p><p><blockquote>一些人预计，到2025年，点播流媒体行业的用户将达到20亿，比2020年的数字增长65%。</blockquote></p><p> Being the first mover 14 years ago has allowed Netflix to get a headstart in acquiring users and building its market-leading user base of 204m. However, this lead will not be easy to maintain. In this piece, we want to cover Netflix’s strategies to get where it is today, how it could maintain its lead and what that will do to the business’ economics.</p><p><blockquote>作为14年前的先行者，Netflix在获取用户和建立2.04亿市场领先的用户群方面取得了领先地位。然而，这种领先优势并不容易保持。在这篇文章中，我们希望介绍Netflix实现今天的战略、如何保持领先地位以及这将对企业的经济效益产生什么影响。</blockquote></p><p> <h2><b>Netflix’s strategy</b></h2> Netflix is a streaming service for content. Its strategy was simple: grow its subscriber base to reach scale quickly by distributing quality content through a great user experience. Then, once it reaches scale, create its own content to become less reliant on external studios and allow itself to generate higher margins through fixed production costs rather than variable licensing fees.</p><p><blockquote><h2><b>奈飞的策略</b></h2>网飞是一个内容流媒体服务。它的策略很简单：通过出色的用户体验分发高质量的内容，扩大用户群以快速达到规模。然后，一旦它达到规模，创建自己的内容，减少对外部工作室的依赖，并允许自己通过固定的制作成本而不是可变的许可费产生更高的利润。</blockquote></p><p> In the early days, this content was all licensed from other studios that actually owned the rights. Netflix paid them licensing fees and, before the company had scale, it was at the mercy of these content providers. Until Netflix was to reach scale (a large enough paying user base), this model typically benefitted the content owners more than the content distributors.</p><p><blockquote>在早期，这些内容都是从其他实际拥有版权的工作室那里获得许可的。Netflix向他们支付了许可费，在公司形成规模之前，它受到了这些内容提供商的摆布。在Netflix达到规模（足够大的付费用户群）之前，这种模式通常比内容分销商更有利于内容所有者。</blockquote></p><p> That’s why in 2013, when the company reached 34m paying subscribers, it began to generate its own content. One of its first productions was the hugely successful and award-winning <i>House of Cards</i>. As the company has continued to grow its user base, it has continued to create its own content in house. By February 2021, when Netflix surpassed 204m paying subscribers, the company reportedly had around 1,500 Netflix original titles, which was roughly 10% of its total international library of 15,000 titles.</p><p><blockquote>这就是为什么在2013年，当该公司的付费用户达到3400万时，它开始生成自己的内容。它的第一部作品之一获得了巨大的成功并获奖<i>纸牌屋</i>随着该公司用户群的不断增长，它继续在内部创建自己的内容。据报道，到2021年2月，当Netflix的付费用户超过2.04亿时，该公司拥有约1,500部Netflix原创图书，约占其国际图书馆15,000部图书总数的10%。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ea2c3b3b37fcfc1064cfda24c06d0284\" tg-width=\"1122\" tg-height=\"1006\"><span>Source: Netflix</span></p><p><blockquote><p class=\"t-img-caption\"><span>来源：Netflix</span></p></blockquote></p><p> Since Netflix has now reached scale and established a market leading position, it needs to continue doubling down on the second part of its strategy to maintain that lead, which is: make more of its own content.</p><p><blockquote>由于Netflix现在已经达到规模并建立了市场领先地位，它需要继续加倍努力实现其战略的第二部分以保持领先地位，即：制作更多自己的内容。</blockquote></p><p> <h2><b>Maintaining its lead</b></h2> It’s <a href=\"https://laohu8.com/S/AONE.U\">one</a> thing to generate a lead, but it’s another to maintain it. Since there’s plenty of streaming options out there such as Disney+, Amazon Prime, Youtube Premium, and users are spoilt for choice. However, while these consumers have a vast array of content at their fingertips, not all of it is “great” content and they only have so much spare time to consume it. That’s why Netflix’s goal is for consumers to “choose Netflix in their moments of free time”. To do this, Netflix knows it needs to provide unique content that is more appealing than others, and deliver it through a seamless user experience.</p><p><blockquote><h2><b>保持领先地位</b></h2>这是<a href=\"https://laohu8.com/S/AONE.U\">一</a>产生销售线索是一回事，但保持销售线索是另一回事。因为有很多流媒体选项，如Disney+、Amazon Prime、Youtube Premium，用户的选择太多了。然而，虽然这些消费者手边有大量的内容，但并不是所有的内容都是“伟大的”内容，他们只有这么多的空闲时间来消费这些内容。这就是为什么Netflix的目标是让消费者“在空闲时间选择Netflix”。要做到这一点，Netflix知道它需要提供比其他内容更有吸引力的独特内容，并通过无缝的用户体验来交付。</blockquote></p><p> Since the company seems to have the user experience mostly in order, a lot of its focus has been on growing the amount of unique content it serves, especially its originals. And we can see Netflix’s shift in spending in the company's cost of revenue expense and the company’s content assets.</p><p><blockquote>由于该公司的用户体验似乎基本正常，因此它的大部分重点都放在增加其提供的独特内容的数量上，尤其是原创内容。我们可以看到Netflix在公司收入支出成本和公司内容资产方面的支出转变。</blockquote></p><p> Netflix’s cost of revenue is its primary expense and was $15.2bn for 2020 (61% of revenue). Two thirds of this ($10.8bn) is made up of the amortization of its content assets.</p><p><blockquote>Netflix的收入成本是其主要支出，2020年为152亿美元（占收入的61%）。其中三分之二（108亿美元）由其内容资产的摊销组成。</blockquote></p><p> Amortization is a method for writing off the cost of the content over its useful life, rather than incurring the cost up front. On average, over 90% of Netflix’s licensed or produced content is amortized over 4 years. So for example, on average, a $100m license fee for a TV show might be amortized at $25m per year over 4 years instead of all at once.</p><p><blockquote>摊销是一种在内容的使用寿命内冲销其成本的方法，而不是预先产生成本。平均而言，超过90%的网飞许可或制作内容在4年内摊销。例如，平均而言，一个电视节目1亿美元的许可费可能会在4年内以每年2500万美元的速度摊销，而不是一次全部摊销。</blockquote></p><p> The chart below shows just how much amortization of content has occurred leading up to 2019 as well as cash spend on content.</p><p><blockquote>下图显示了截至2019年的内容摊销金额以及内容上的现金支出。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cf9c9277c0f8a9fba4bf1fb9d9b5e3c5\" tg-width=\"1508\" tg-height=\"818\"><span>Source: Next Level Finance</span></p><p><blockquote><p class=\"t-img-caption\"><span>资料来源：下一级财经</span></p></blockquote></p><p></p><p> You’ll notice the cash spend column beside the amortization column. Cash spend is recorded in the statement of cash flows and represents the money Netflix spends upfront to produce its own content. Importantly, this disparity between the two columns reflects that the company is spending more on producing its own content since cash spend is increasing at a faster rate than amortization.</p><p><blockquote>您会注意到摊销列旁边的现金支出列。现金支出记录在现金流量表中，代表Netflix为制作自己的内容而预先花费的资金。重要的是，两栏之间的差异反映出该公司在制作自己的内容上花费更多，因为现金支出的增长速度快于摊销。</blockquote></p><p> For 2020, content amortization reached $10.8bn and cash spend reduced to $12.5bn, but it was still higher than the amortization expense.</p><p><blockquote>2020年，内容摊销达到108亿美元，现金支出减少至125亿美元，但仍高于摊销费用。</blockquote></p><p> This transition of increasing spend on original content then shows up in the company’s content assets split too.</p><p><blockquote>这种增加原创内容支出的转变也体现在公司的内容资产分割中。</blockquote></p><p> In 2016, the company had $11bn worth of content assets, which was split between 86% licensed content, and 14% original content. However, by 2020, content assets reached $25bn and the split was now 54% licensed to 46% original. This shift is helping the company become less at risk of studios pulling their content, because it has more of its own to showcase.</p><p><blockquote>2016年，该公司拥有价值110亿美元的内容资产，其中86%为授权内容，14%为原创内容。然而，到2020年，内容资产达到250亿美元，现在54%是授权的，46%是原创的。这种转变有助于该公司降低工作室撤回其内容的风险，因为它有更多自己的内容可以展示。</blockquote></p><p> Releasing and owning unique titles such as Stranger Things, House of Cards, The Crown, The Witcher, or The Queen’s Gambit are crucial for Netflix to maintain its lead. It gives their existing users all the more reason to keep their subscriptions as new titles like these are released, and it gives prospective users all the more reason to sign up if they want to view these exclusives.</p><p><blockquote>发行和拥有独特的游戏，如《奇异事物》、《纸牌屋》、《王冠》、《巫师》或《女王的策略》，对于网飞保持领先地位至关重要。随着像这样的新游戏的发布，它给了他们现有的用户更多的理由保持他们的订阅，它给了潜在用户更多的理由注册，如果他们想查看这些独家新闻。</blockquote></p><p> This transition to original content is helping the company build its own moat by becoming less reliant on external providers. As Netflix becomes both the producer and distributor of a larger portion of its content library, this creates a lot of operating leverage and thus helps the company’s bottom line.</p><p><blockquote>这种向原创内容的过渡正在帮助该公司通过减少对外部提供商的依赖来建立自己的护城河。随着Netflix成为其大部分内容库的生产商和分销商，这创造了大量的运营杠杆，从而有助于公司的利润。</blockquote></p><p> <h2><b>How this impacts the economics</b></h2> The positive financial impact of reaching a huge operating scale in a business like Netflix cannot be understated. Additionally, the expansion of originals in its content library exaggerates the positive effects that scale has on the company’s bottom line. This effect can already be seen over the last five years, and analysts expect this to continue over the next five.</p><p><blockquote><h2><b>这对经济有何影响</b></h2>在像网飞这样的企业中达到巨大的运营规模所带来的积极财务影响不可低估。此外，其内容库中原创作品的扩展夸大了规模对公司利润的积极影响。这种影响在过去五年中已经可以看到，分析师预计这种影响将在未来五年持续下去。</blockquote></p><p> In 2016, net profit margins were only 2.1% but reached 11% in 2020. This is thanks to the 120% increase in paying subscribers (to 204m) and the aforementioned increase in fixed cost original content. Looking forward, analysts expect further growth in revenue and earnings thanks to more subscriber growth and an increase in original content as a percentage of total titles. By 2025, the company is expected to double revenue to $51bn and increase earnings more than 4-fold to $12bn, which would result in further net margin expansion to 23.5%.</p><p><blockquote>2016年，净利润率仅为2.1%，但2020年达到11%。这要归功于付费用户增长120%（达到2.04亿）以及上述固定成本原创内容的增长。展望未来，分析师预计，由于订户数量的增加以及原创内容占总标题百分比的增加，收入和盈利将进一步增长。到2025年，该公司预计收入将翻一番，达到510亿美元，盈利将增长4倍以上，达到120亿美元，这将导致净利润率进一步扩大至23.5%。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/90dda28b7a97c864def67fed7695916e\" tg-width=\"1702\" tg-height=\"1186\"><span>Source: Earnings and Revenue Growth Forecasts - NASDAQ:NFLX - Simply Wall St</span></p><p><blockquote><p class=\"t-img-caption\"><span>资料来源：盈利和收入增长预测-纳斯达克：NFLX-Simply Wall ST</span></p></blockquote></p><p> It should be noted that while Netflix will need to continue creating its own content to remain relevant and satisfy user demand, its scale is now at a stage where this is affordable.</p><p><blockquote>应该指出的是，虽然Netflix将需要继续创建自己的内容以保持相关性并满足用户需求，但其规模现在处于可承受的阶段。</blockquote></p><p> Additionally, with this leading scale, those studios that do license their content to Netflix (because they don’t have a streaming platform of their own) will either have to start one of their own from square one and find users to make it economical, or look for a better license deal from a different streaming service (which might be difficult given Netflix is the biggest and likely able to pay them the most).</p><p><blockquote>此外，凭借这种领先的规模，那些将其内容授权给网飞的工作室（因为他们没有自己的流媒体平台）要么必须从头开始创建自己的流媒体平台，并找到用户以使其经济，要么从不同的流媒体服务中寻找更好的许可协议（这可能很困难，因为网飞是最大的，可能能够向他们支付最多的费用）。</blockquote></p><p> <h2><b>Summing it up</b></h2> Netflix’s core focus for a long time has been its subscriber growth since this is key to becoming profitable. The company’s growing investment into originals is aimed at acquiring even more users, and its vast library of titles is used to retain them. Both its scale and unique content help to solidify the company’s moat and let it generate more profit from each piece of content. Analysts expect that this trend of user growth and original content creation will continue, and as a result, growth in Netflix’s top and bottom line is expected to persist out to at least 2025.</p><p><blockquote><h2><b>总结一下</b></h2>Netflix长期以来的核心关注点一直是用户增长，因为这是盈利的关键。该公司对原创作品不断增长的投资旨在获得更多用户，其庞大的图书库被用来留住他们。其规模和独特的内容都有助于巩固公司的护城河，让其从每条内容中产生更多利润。分析师预计，这种用户增长和原创内容创作的趋势将持续下去，因此，Netflix的营收和利润增长预计将至少持续到2025年。</blockquote></p><p> While all of this growth is impressive, it did come with some strings attached. Netflix levered up and by 2020 year end it had $16bn in debt. Our company report on Netflix contains a full breakdown of the company’s financial health and its ability to fund the debt.</p><p><blockquote>虽然所有这些增长令人印象深刻，但它确实伴随着一些附加条件。Netflix提高了杠杆率，到2020年底，其债务已达160亿美元。我们关于Netflix的公司报告包含了该公司财务健康状况及其为债务融资能力的完整明细。</blockquote></p><p></p>\n<div class=\"bt-text\">\n\n\n<p> 来源：<a href=\"https://simplywall.st/stocks/us/media/nasdaq-nflx/netflix/news/netflixs-nasdaqnflx-scale-is-the-key-to-its-profitability\">Simply Wall St.</a></p>\n<p>为提升您的阅读体验，我们对本页面进行了排版优化</p>\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://simplywall.st/stocks/us/media/nasdaq-nflx/netflix/news/netflixs-nasdaqnflx-scale-is-the-key-to-its-profitability","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2120580281","content_text":"• Netflix's strategy was to reach scale, then create its own content\n• Its library is shifting towards original content\n• Net margins are expanding as scale takes effect\nOn-demand streaming is one of the most competitive industries in the 21st century. Netflix (NASDAQ:NFLX) was the pioneer back in 2007 with its “Watch Now” service. Since then, many players have joined the space - and you can’t blame them, the model of on-demand streaming is more streamlined (pardon-the-pun) and scalable than traditional distribution methods. It has provided those with valuable intellectual property such as movies and TV shows a new and efficient way to monetize these assets.\nSome expect the on-demand streaming industry to reach 2 billion users by 2025, which would be a 65% increase from 2020 figures.\nBeing the first mover 14 years ago has allowed Netflix to get a headstart in acquiring users and building its market-leading user base of 204m. However, this lead will not be easy to maintain. In this piece, we want to cover Netflix’s strategies to get where it is today, how it could maintain its lead and what that will do to the business’ economics.\nNetflix’s strategy\nNetflix is a streaming service for content. Its strategy was simple: grow its subscriber base to reach scale quickly by distributing quality content through a great user experience. Then, once it reaches scale, create its own content to become less reliant on external studios and allow itself to generate higher margins through fixed production costs rather than variable licensing fees.\nIn the early days, this content was all licensed from other studios that actually owned the rights. Netflix paid them licensing fees and, before the company had scale, it was at the mercy of these content providers. Until Netflix was to reach scale (a large enough paying user base), this model typically benefitted the content owners more than the content distributors.\nThat’s why in 2013, when the company reached 34m paying subscribers, it began to generate its own content. One of its first productions was the hugely successful and award-winning House of Cards. As the company has continued to grow its user base, it has continued to create its own content in house. By February 2021, when Netflix surpassed 204m paying subscribers, the company reportedly had around 1,500 Netflix original titles, which was roughly 10% of its total international library of 15,000 titles.\nSource: Netflix\nSince Netflix has now reached scale and established a market leading position, it needs to continue doubling down on the second part of its strategy to maintain that lead, which is: make more of its own content.\nMaintaining its lead\nIt’s one thing to generate a lead, but it’s another to maintain it. Since there’s plenty of streaming options out there such as Disney+, Amazon Prime, Youtube Premium, and users are spoilt for choice. However, while these consumers have a vast array of content at their fingertips, not all of it is “great” content and they only have so much spare time to consume it. That’s why Netflix’s goal is for consumers to “choose Netflix in their moments of free time”. To do this, Netflix knows it needs to provide unique content that is more appealing than others, and deliver it through a seamless user experience.\nSince the company seems to have the user experience mostly in order, a lot of its focus has been on growing the amount of unique content it serves, especially its originals. And we can see Netflix’s shift in spending in the company's cost of revenue expense and the company’s content assets.\nNetflix’s cost of revenue is its primary expense and was $15.2bn for 2020 (61% of revenue). Two thirds of this ($10.8bn) is made up of the amortization of its content assets.\nAmortization is a method for writing off the cost of the content over its useful life, rather than incurring the cost up front. On average, over 90% of Netflix’s licensed or produced content is amortized over 4 years. So for example, on average, a $100m license fee for a TV show might be amortized at $25m per year over 4 years instead of all at once.\nThe chart below shows just how much amortization of content has occurred leading up to 2019 as well as cash spend on content.\nSource: Next Level Finance\nYou’ll notice the cash spend column beside the amortization column. Cash spend is recorded in the statement of cash flows and represents the money Netflix spends upfront to produce its own content. Importantly, this disparity between the two columns reflects that the company is spending more on producing its own content since cash spend is increasing at a faster rate than amortization.\nFor 2020, content amortization reached $10.8bn and cash spend reduced to $12.5bn, but it was still higher than the amortization expense.\nThis transition of increasing spend on original content then shows up in the company’s content assets split too.\nIn 2016, the company had $11bn worth of content assets, which was split between 86% licensed content, and 14% original content. However, by 2020, content assets reached $25bn and the split was now 54% licensed to 46% original. This shift is helping the company become less at risk of studios pulling their content, because it has more of its own to showcase.\nReleasing and owning unique titles such as Stranger Things, House of Cards, The Crown, The Witcher, or The Queen’s Gambit are crucial for Netflix to maintain its lead. It gives their existing users all the more reason to keep their subscriptions as new titles like these are released, and it gives prospective users all the more reason to sign up if they want to view these exclusives.\nThis transition to original content is helping the company build its own moat by becoming less reliant on external providers. As Netflix becomes both the producer and distributor of a larger portion of its content library, this creates a lot of operating leverage and thus helps the company’s bottom line.\nHow this impacts the economics\nThe positive financial impact of reaching a huge operating scale in a business like Netflix cannot be understated. Additionally, the expansion of originals in its content library exaggerates the positive effects that scale has on the company’s bottom line. This effect can already be seen over the last five years, and analysts expect this to continue over the next five.\nIn 2016, net profit margins were only 2.1% but reached 11% in 2020. This is thanks to the 120% increase in paying subscribers (to 204m) and the aforementioned increase in fixed cost original content. Looking forward, analysts expect further growth in revenue and earnings thanks to more subscriber growth and an increase in original content as a percentage of total titles. By 2025, the company is expected to double revenue to $51bn and increase earnings more than 4-fold to $12bn, which would result in further net margin expansion to 23.5%.\nSource: Earnings and Revenue Growth Forecasts - NASDAQ:NFLX - Simply Wall St\nIt should be noted that while Netflix will need to continue creating its own content to remain relevant and satisfy user demand, its scale is now at a stage where this is affordable.\nAdditionally, with this leading scale, those studios that do license their content to Netflix (because they don’t have a streaming platform of their own) will either have to start one of their own from square one and find users to make it economical, or look for a better license deal from a different streaming service (which might be difficult given Netflix is the biggest and likely able to pay them the most).\nSumming it up\nNetflix’s core focus for a long time has been its subscriber growth since this is key to becoming profitable. The company’s growing investment into originals is aimed at acquiring even more users, and its vast library of titles is used to retain them. Both its scale and unique content help to solidify the company’s moat and let it generate more profit from each piece of content. Analysts expect that this trend of user growth and original content creation will continue, and as a result, growth in Netflix’s top and bottom line is expected to persist out to at least 2025.\nWhile all of this growth is impressive, it did come with some strings attached. Netflix levered up and by 2020 year end it had $16bn in debt. Our company report on Netflix contains a full breakdown of the company’s financial health and its ability to fund the debt.","news_type":1,"symbols_score_info":{"NFLX":0.9}},"isVote":1,"tweetType":1,"viewCount":2687,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":11,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/327974153"}
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