NETFLIX LOST THE ENTIRE MARKET capitalisation of a State Bank of India in two days - $ 60 billion! It has lost 66 percent of its value in 2022 having fallen to below $100 billion now and is out of the top 100 US companies ranked by market cap.
Such value destruction is quite fundamental and I do not believe the popular theories circulating capture the full import of such an erosion. These theories range from the obvious ones relating to stiff competition, inflation affecting demand, exit from Russia, etc. to more nuanced ones like the books, though legally tenable, not quite reflecting the true cost of employee compensation, Me Too content creation, and the inability to pass on its premium acquisition costs of content and scripts. Many have commented - too late - that the entire media industry could be up for grabs.
All these are fair assessments - the question though is why was this not discounted by the analyst community of such a highly followed stock? One more example, if indeed one was needed, of how poor the analysts are in predicting the future and how futile it is to follow advice when they are generally always behind the curve.
There are two aspects, though, which have not yet appeared in the public domain, and which are, unsurprisingly, age old management plus leadership problems and not unique to the media industry or Netflix.
Denne historien er fra May 21, 2022-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 21, 2022-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences