1. My Personal Conviction Began Long Before My First Trade
Between 2017 and 2019, I subscribed to Netflix not just as a consumer—but as an early observer of a profound structural shift in media.
My conviction wasn’t born out of analyst reports or Wall Street models. It was born in the field. I had worked for two national television stations earlier in my career, and it became abundantly clear even then: linear television was dying.
- Appointment viewing was an anachronism.
- Prime-time schedules were losing meaning.
- Advertisers were chasing attention that had already left the room.
Netflix wasn’t just another app on a smart TV. It was the future of global entertainment infrastructure—an end-to-end platform with:
- A massive and growing content library
- A direct-to-consumer relationship in nearly every country
- A scalable, high-retention subscription model with global price elasticity
I didn’t just believe this shift would happen. I saw it happening in real time—across demographics, countries, and devices.
2. The Product-Led Growth Machine
By the time I made my investment, Netflix had already crossed a tipping point: its product wasn’t just a streaming app—it was the habit.
- It sat on people’s home screens, not just in their bookmarks.
- It was multi-device, multi-profile, cross-border, and deeply personal.
- The UX was effortless: open → continue watching → immersed in seconds.
Every time they improved content recommendation, compressed streaming bandwidth, or launched new mobile-friendly plans in emerging markets, they added marginal layers of moat that compounded over time.
And when users started sharing passwords, something remarkable happened:
- Netflix let it ride—allowing the product to go viral.
- Then, years later, it converted free users into paid ones with remarkable effectiveness.
- Instead of losing users, they increased ARPU.
That’s not a sign of exploitation. That’s a sign of network strength and pricing power.
3. The Global Platform Play
What excites me most about Netflix isn’t just the content. It’s the platform economics and international reach.
- Low marginal cost of customer acquisition (especially in new markets)
- Localized production at global scale (e.g., Money Heist, Squid Game, Fauda)
- Cross-market consumption—Korean dramas watched in Mexico, German thrillers watched in Australia
- Unparalleled data feedback loops to inform content spend and renewal decisions
Netflix has quietly become one of the most globally diversified, culturally relevant, and digitally native entertainment businesses in history.
While traditional studios are still thinking in terms of box office territories, Netflix is operating a unified global subscriber ecosystem with:
- Near real-time analytics
- Dynamic pricing
- Agile localization
- Minimal physical footprint
This is what I call a Network-Effect Platform Business—and it’s rare in media.
4. The Optionality of the Flywheel
Netflix today isn’t the endgame—it’s a platform of platforms with future optionality:
- Gaming as a natural extension of narrative universes
- Live events and sports-lite content (e.g., Drive to Survive)
- Advertising tiers to monetize price-sensitive markets
- Franchise IP development à la Disney, but with data-led production
Each new layer reinforces the core flywheel:
More content → More engagement → More retention → More revenue → More reinvestment in content → Repeat.
What makes it even more compelling is that their distribution platform is fully owned and operated. No middlemen. No theatres. No cable operators. Just Netflix and the subscriber.
5. Final Thoughts: Why I’m Still Long
I only invest in businesses that pass the Snap Test:
If this company were to disappear tomorrow, would the world notice?
With Netflix, the answer is a resounding yes.
Millions of people. Hundreds of countries. Billions of viewing hours per month.
Netflix isn’t just a consumer brand. It’s a global utility for storytelling.
It commands attention, loyalty, habit, and cultural significance.
Its platform economics are superb, and its global operating leverage is just beginning to show.
Summary of Why I Own Netflix
- ✅ Category leader with global scale and high retention
- ✅ Platform economics and direct-to-consumer relationship
- ✅ Cultural diversification through content that travels
- ✅ Strong pricing power even after cracking down on password sharing
- ✅ Expanding flywheel into games, ads, and beyond
- ✅ Passes the Snap Test and holds asymmetric upside
In my view, this is a company with decades of compounding left, powered by storytelling, data, and software—all wrapped into one of the most loved platforms on the planet.
