Here's Why Netflix's Most Important Number Is $17 Billion
When it comes to achieving success in the burgeoning streaming industry, content is king. Companies with deep pockets have the ability to spend huge sums of money in order to develop and acquire the best shows, movies, and documentaries. This keeps existing customers satisfied while at the same time attracting new ones.
As the leader in the space, Netflix (NASDAQ: NFLX) had an incredible 209 million subscribers as of the second quarter, and it generated $27.6 billion in trailing-12-month revenue. This size is why management was comfortable planning to spend over $17 billion on content in 2021.
Here's why that number is so important to the business.
Source Fool.com
