The One Thing That Could Hamper The Netflix Growth Story
Netflix (NASDAQ: NFLX) has become one of the best-performing communication stocks of the last decade. As the pioneer of streaming media, the company has grown its subscriber base and revenue at astounding rates.
At the same time, rising costs have placed increasing pressure on the company's bottom line. Although the COVID-19 pandemic and its effect on operations may offer some reprieve, the high cost of content production could ultimately pose a threat to the Netflix growth story.
Netflix established itself by pioneering changes in the way the public consumes media. Its rise first destroyed the video rental industry. More recently, with a continuing cord-cutting trend, it has likely caused irreparable damage to the cable and satellite TV industries as well.
Source Fool.com
