A Look at Netflix's New Content Monetization Strategy
Optionality refers to a company's ability to create new revenue streams by launching new products and services related to its core operations. And it's an important thing for investors to consider when picking a stock to buy. Companies with a single product have a limited market opportunity. But by exercising optionality, they can grow their market and (if they successfully execute) can deliver outsize shareholder returns for many years.
Fool contributor Danny Vena believes Netflix (NASDAQ: NFLX) still has optionality. In this video clip from Motley Fool Live, recorded on July 15, he explains how the company is leveraging its intellectual property by launching a video game business. If successful, this could be just one way Netflix can keep growing its business far longer than its critics might think.
Source Fool.com
