The Economics of Netflix

Happy Sunday! Are you still watching? Judging by Netflix’s latest earnings report last week, you — and everyone you know — probably are, with record-breaking profits, subscriber numbers, and the streamer’s market cap. reaching an all-time high of ~$326 billion. We’re looking at Reed Hastings’ co as the first of our two deep dives for you this Sunday. Have feedback for us? Just hit reply - we'd love to hear from you!   Netflix has won the streaming wars, and it’s [not really close](. On Thursday, the streaming service reported its most profitable quarter in history, the company added even more subscribers than analysts were expecting, and the stock was up 10% — another page in the long running story of how Netflix has come to dominate the world of on-demand film and TV. With the sub count growing in every region over the last year, there are now 283 million of us who log in and scroll, struck with choice paralysis, through Netflix’s vast content library, roughly 130 million more than the count for those doing the same on the company’s closest competition, Disney+. Price rises and a crackdown on password sharing haven’t been popular with users, but shareholders are loving it. Read: [The Economics of Netflix aren’t what they used to be... they’re a lot better](, where we lay out exactly what Netflix spends your subscription revenue on.   Other great stories from the week - [Why PE is cutting multimillion-dollar checks to plumbers.]( Millions of dollars of private equity cash is flowing through your pipes, plug sockets, and AC units. - [The speed bump in the AI-chip trade, in one chart.]( One of the biggest names in the chip-making game saw a sharp sales slowdown. The market’s already mostly over it. - [Hate it when you get delayed at the airport? Book an early flight with Hawaiian Airlines.]( Crunching the numbers on the best airlines and flight times if you hate getting held up in departures. - [The crash test dummies for new AI models.]( Speaking to 4 “red teamers” — the users tasked with helping to train hateful, disturbing, and dangerous content out of early artificial intelligence models.   More than a game When Marshmello, the American DJ and producer whose face is covered by a helmet in the shape of a white marshmallow, took to the stage at Pleasant Park in 2019, 10.7 million people turned up to watch, making it the biggest show of his career by several orders of magnitude. The only catch? The whole thing was on Fortnite, the mind-bogglingly popular video game where players usually build, loot, and battle their way to make it as the last one standing, rather than dance awkwardly to accessible EDM tunes. Ever since that first concert on the platform in 2019, and even before that, Fortnite has been a cultural hub, hosting some of the biggest names in entertainment, from Star Wars to Travis Scott, who reportedly made $20 million from merch sales following his virtual concert in 2020. Read: [“Fortnite” is more than a game. It's the single most important influence on popular culture.](   Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi, I like the newsletters, but I had a thought for you...) or want to [sponsor this newsletter](mailto:advertising@sherwoodmedia.com?subject=I’m interested in advertising with Sherwood Media)?   Not a subscriber? Sign up for free below. [Subscribe](   [X]( [Instagram]( [Chartr Logo]( Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( [Our Editorial Standards]( [Contact Us](mailto:daily@chartr.co?body=Hi%2C%0A%0AI%20like%20the%20newsletters%2C%20but%20I%20had%20a%20thought%20for%20you...&subject=Feedback) [Advertise With Us](mailto:advertising@sherwoodmedia.com?body=I%E2%80%99m%20interested%20in%20advertising%20with%20Sherwood%20Media) [Unsubscribe](newsletter=chartr) [Privacy Policy](