The Future Is Very Scary for Netflix: Bibb

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Oct. 22 (Bloomberg) -- Porter Bibb, managing partner at Mediatech Capital, discusses the challenges ahead for Netflix as it needs to continue to grow and repeat its success with original programming and the milestone of passing HBO in paid subscribers. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”


Is it a correct is this plan?

I think the future is very scary for reed hastings and netflix.

As scarlet mentioned, they have a very difficult model to sustain.

He has done a brilliant job of creating a new concept for binge viewing, but netflix is not just a shift from male over -- mail order envelopes to his television viewing, now not movies.

They said they're looking into producing original movies as well.

Sure, but that puts them into the hollywood poker game with their one out of 10 is a hit.

Critically, can you compare them to amazon?

Amazon is in the tangible sales business where netflix is in the concept.

What is getting everybody crazed about netflix is, where is the competition?

You have amazon, google, facebook, even sony has something that nobody is ever heard of cut and netflix competitor called crackle that is six years old.

Original comparison him this comparison is netflix versus hbo, which is why yesterday was so significant because netflix topped the number.

Netflix made $32 million net profit from a $7 million free cash flow this past quarter.

Last year, hbo did $1.6 billion in profit.

That is why netflix is having a difficult time -- what is interesting, netflix has verbalized this themselves.

The chief content officer famous for the line, the goal is to become hbo faster than hbo can become us.

Reed hastings is concerned where momentum stock and he wish he could tamp that down.

Then he says, but i'm in the midst of talks with comcast.

Last month it was time warner.

Are they a profit generating entity?

They're making money now, but they plan to spend more money as well.

They plan to doug rule -- a double their investment.

They raise money to fund it.

What they don't reveal is the churn rate.

It is very significant.

Secondly, the off-balance-sheet liabilities.

They carry half $1 billion of debt on their balance sheets.

They have over $3 billion in future liabilities for contracts or content acquisition.

Dragon lady, my whole thing for netflix is winter is coming.

"game of thrones," you are waiting.

It is not dragon lady, it is queen of dragon.

Excuse me.

It gives than 15 million to 20 money new potential subscribers.

What i'm worried about is where the cable company so interested in netflix because they will offer you and me a subscribers eight dollars for 10,000 movies versus one movie for six dollars.

You and i have to stop talking queen of dragon.

Porter bibb.

We will talk more with him.

Coming up, larry fink says washington needs to prove itself.

We will look into why he's making a splash about washington

This text has been automatically generated. It may not be 100% accurate.


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