**Pros**
\- Paramount/WBD merger creates a highly leveraged competitor with questionable management.
\- Strong FCF and balance sheet
\- Best in class brand equity
\- Trading below historical norms ( PE ).
\- Continued tailwinds in Emerging/Frontier markets
\- AI lowering production costs
\- Strong management (pioneering talent density).
**Cons**
\- Amazon Prime and their massive scale
\- Younger cohorts increasingly gaming and watching UGC content
\- Saturated developed markets
\- Uncertainty regarding product expansion/changes to product mix
\- Removal of KPI's such as semi annual watch time
**Summary**
Ad tiers to drive increased adoptions in emerging/frontier markets. Clear path for AI to improve margins. Plausible market share gain in short term, as competition must improve balance sheet. Development of AD monetisation infrastructure to decrease margins in short term. Netflix is cheap based on historical averages - by some margin, attributable to removal of KPI's, changes to monetisation and fears of market saturation. The market is increasingly viewing Netflix as a mature media conglomerate instead of as a hyper growth story. If Netflix can maintain high single digits growth, then the current valuation is attractive.
Netflix is my second biggest investment at around 15% of portfolio.
Not financial advice. I can have made mistakes. Always do your own due diligence.