Netflix's Content Spending Is Sustainable, but Not Particularly Profitable Yet
Last year was a big one for Netflix (NASDAQ: NFLX). The company finished 2020 with just shy of 204 million global subscribers, 37 million more than a year ago, as consumers stuck at home looked for ways to pass the time during the pandemic turned to the streaming service for assistance. And thanks in no small part to a pause in new content production during the lockdown last spring, Netflix also reported a big increase in profitability. Some of this profitable progress is bound to take a step back again in 2021, though, as spending on content ramps back up.
Despite the mostly good news for this company, given the streaming leader's business model, I still can't get super excited about making a purchase of its stock for my portfolio.
Back in 2012, Netflix entered the competitive media industry fray as a producer of content. It started really ramping up its original content efforts in 2014 and used this exclusive library of new content to quickly acquire subscribers in both the U.S. and abroad.
Source Fool.com
