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Selasa, 23 Januari 2018

The good times are rolling for Netflix — even with the looming threat from Disney

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The good times are rolling for Netflix — even with the looming threat from Disney

Little more than five years ago, Netflix looked like a train wreck. The company had announced then quickly aborted a widely ridiculed effort to set up its profitable DVD business as a separate operation and rename it Qwikster. Customers were incensed by a big price hike. And investors were none too happy about the company's overseas expansion efforts, which were weighing on its profits.

Boy, how things have changed. Netflix dominates the streaming media market and its DVD business is an afterthought. Its stock price has doubled in the last 13 months. And, as this chart from Statista shows, its profit is now more than double what it was in the good old days before the Qwikster debacle. Of course, it's still borrowing billions of dollars to keep its library of videos well stocked and it faces a potentially dangerous threat in the form of an upcoming streaming service from Disney, but those seems like minor quibbles when everything else is going so well.

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