This Could Be Netflix's Biggest Weakness
It's a great time to be Netflix Inc (NASDAQ: NFLX). Shares of the leading video streamer just shot to record highs after announcing a price increase. Not only will the company soon see rising operating margins, but investors are rewarding management for the move.
Meanwhile, analysts are bullish about next week's earnings report, and the company just won 20 Emmy awards after garnering a company-record 91 nominations at the annual television celebration.
Netflix's success with original programming along with the performance of the underlying business and stock price has taken over the narrative of the company. The service is now associated with hit shows like House of Cards and Stranger Things, but its growing reputation for original content belies an important truth about the company -- most of its programming budget and viewership revolves around licensed, not original content.
Source: Fool.com
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