Streaming services: speculative bubble or strategic investment?
Apple, Disney, AT&T and Comcast are among the companies to have recently announced their entry into this market – in which Netflix and Amazon are the relatively established first-movers.
These are large firms, and they are making large investments.
Analysts estimate that for each dollar that a Netflix subscriber spends each month, they receive about $1bn worth of content. Netflix has been extraordinarily influential in reshaping the media landscape, but critics may also observe that the one thing to have grown faster than its share price is its debt mountain. So how on earth does this business actually work – and is it sustainable?