How Netflix Does It: Simple Math

IBM maintains their hardware (“IBM XIV has helped us to exceed all of our service-level agreements with the business.” – IBM) + Netflix is a direct marketer whose primary goal is marketing for new members + the excess dough (profit) they use to make movies using financial statements linked to real time database of subscriber sign-ups that might be stable for a year into the future (Netflix uses AI to figure out how much to pay for content – IBM) = They’re nothing but sign ups.

Other Netflix simple mathematic formulas.

FTC told Netflix the data they re-sold can reidentify their members (https://www.ftc.gov/sites/default/files/documents/closing_letters/netflix-inc./100312netflixletter.pdf). Cornell University can re-identify Netflix users too (https://www.cs.cornell.edu/~shmat/netflix-faq.html)

The Netflix formula for movies is just an SNL skit. Every character lives in their own world and is brought together by some common environment. It’s not really fiction writing or a whole plot.

Brightcove delivers more video hours for banner ads than Netflix for movies.

What was suppose to be another marketing hook for 2017, a Cannes prize, turned sour when Netflix movies were rejected for not being ‘wide releases’ available to all exhibitors (The Verge).

Pre IPO they might say a company is worth so much. Work backwards with an existing company: GE has 8,709 Mil shares each worth $27.38. The value is what? If a company like Netflix is worth $70 billion, for how many shares, will determine the price of each share. Google has 691.75 Mil shares and each is worth $987.09. If Netflix offered the same number of shares, each would be worth $101 if when the company is valued at $70 Bil, and more than a share of GE.