Are Netflix Shares a Little Too Expensive?

The transcript discusses Netflix's stock volatility, driven by its entertainment value and unpredictable subscriber responses. It covers Netflix's strategy to license content in China, which could be significant if successful. The rising costs of original content are debated, with concerns about sustainability. Speculations about Netflix being an acquisition target are addressed, with Reed Hastings focusing on the potential of internet TV migration.

What are the two main factors contributing to Netflix's stock volatility?

• Stable market conditions and consistent subscriber growth

• Popularity of the stock and unpredictable subscriber reactions

• Lack of new content and high subscription fees

• High competition and low subscriber growth

What strategic move did Netflix announce regarding its content in China?

• Building its own streaming platform in China

• Licensing content to Chinese streaming providers

• Partnering with Chinese media companies for co-productions

• Exiting the Chinese market completely

What percentage of Netflix's content costs is currently spent on original content?

• 70 to 80%

• 50 to 60%

• 10 to 20%

• 30 to 40%

How does Reed Hastings view Netflix in comparison to traditional media companies?

• As a niche entertainment provider

• As a tech company similar to Facebook and Google

• As a regional content distributor

• As a traditional media company

What is a potential risk if Netflix focuses solely on increasing content hours?

• Increased competition from cable TV

• Higher subscription fees

• Decreased content quality

• Loss of subscriber interest