[Market Trends] Netflix subscriber growth signals companies have to 'spend on great content': LightShed's Greenfield | CNBC Television
๐ Netflix Demonstrates: Investing in Premium Content Is Key to Dominating the Media Industry
Rich Greenfield from LightShed Partners discussed Netflix's impressive quarterly subscriber growth, noting that the company continues to surpass expectations. Despite fears that initiatives like advertising would hinder growth, Netflix added 8 million subscribers in the quarter. Other media companies are cutting costs and scaling back on content, but Netflix is investing heavily, spending over $17 billion on content like NFL and WWE shows. This strategy demonstrates that substantial investment in quality content is essential for growth in this industry. Competitors are struggling because they are not willing to invest similarly in content and technology.