RBC's Mahaney Says Net Neutrality Doesn't Impact Netflix

The video discusses Netflix's cost structure, highlighting that content and marketing are the largest expenses, with broadband distribution costs being minimal. It explores the potential impact of rolling back net neutrality, suggesting it may hinder innovation and create barriers for new competitors, while established companies like Netflix and Amazon remain largely unaffected. The discussion emphasizes the challenges small upstart companies face due to increased costs and lack of political support, potentially stifling future market opportunities.

What are the two largest cost items for Netflix?

• Content and marketing

• Broadband distribution and marketing

• Content and broadband distribution

• Marketing and customer service

How much of Netflix's revenue is approximately spent on content?

• 40%

• 30%

• 20%

• 50%

What is the potential impact of net neutrality changes on new competitors to Netflix?

• It will make it harder for them to scale up

• It will have no impact

• It will reduce their costs

• It will make it easier for them to scale up

What is a possible consequence of rolling back net neutrality for small companies?

• Reduced business costs

• Stifled innovation

• Increased political support

• Easier market entry

Why might small upstart companies struggle with changes in net neutrality?

• They have strong political backing

• They are well-established players

• They are too small to matter to most consumers

• They have abundant resources