Sure enough, the streaming service changed their tune last night

A couple months ago, a certain streaming service told its investors not to worry about the mountains of cash it was blowing through. A couple billion last year was going even higher this year - but they could always make that change in the future. Just trust them. At the time, I told you this was a lie.

Source: http://www.crazydaysandnights.net

Show Me The Cash – Mr. Hedge

A couple months ago, a certain streaming service told its investors not to worry about the mountains of cash it was blowing through.

A couple billion last year was going even higher this year – but they could always make that change in the future.

Just trust them.

At the time, I told you this was a lie. Sure enough, the streaming service changed their tune last night, and said they planned to burn through cash for several years to come.

But don’t worry, all is good – just lend them more money.

So if a business charged a price for something its customers loved – but really needed to charge 25% more just to cover its cash costs, and 40% more just to earn a decent cash profit – what kind of “business” would that be?

Would that “business” have anywhere near the number of customers they currently enjoy?

Netflix