What Netflix Needs to Do to Reach $1,000
In this video, I will be going over a couple of things that might push Netflix (NASDAQ: NFLX) to new heights. It's something that Netflix CEO Reed Hastings is unwilling to do as of now. I recently talked about the rise of connected TV (CTV) and the new dawn of TV advertising during the Roku (NASDAQ: ROKU) and The Trade Desk (NASDAQ: TTD) videos. Another big catalyst could be the gaming sector.
As of today, Netflix's model is pretty straightforward: You pay a monthly fee and you get all the entertainment you want with no ads. That model works well when you're growing fast, but Netflix is maturing in its home market and it could approach a saturation point soon. The company has also reached its target of 60 million to 90 million households in the U.S., as it finished last year with 74.4 million members in North America.
Price increases can't be done every year, so it might be time for Netflix to look into the ad-supported content world -- just like Hulu, YouTube, and The Roku Channel. But that is something Netflix CEO Reed Hastings has repeatedly been against, saying:
Source Fool.com
