Contrarian viewpoint alert
I am skeptical of the long-term profitability of Netflix.
In the @bgurley @patrick_oshag podcast Gurley talked about how certain markets don't lend themselves to the creation of profitable network effects marketplaces.
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For example, if there's too much customer concentration on either the buyer or seller side, that side can effective collude to prevent marketplace formation. It's my understanding that this is what has happened in the US airlines industry.
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Delta did make $8 bil in EBITDA last year tho, Southwest $4 bil, United $6 bil
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Unheard of for an industry that used to be famous for generating TERRIBLE returns for investors. What happened? Basically a roll-up.
9:26 AM - 18 Sep 2019
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