The Outlook for Netflix According to Wedbush's Pachter

The transcript discusses Netflix's challenges, including content loss from major providers and pricing strategies. It highlights the impact of these factors on customer churn and ARPU. The analysis also covers Netflix's valuation based on free cash flow, contrasting it with traditional earnings-based valuation methods. The speaker predicts stalled growth and continued negative cash flow for Netflix, questioning optimistic price targets.

What is one of the main reasons for Netflix's increased customer churn?

• Introduction of new content

• Price increases

• Improved streaming quality

• Partnership with Disney

Which major content providers are leaving Netflix, causing a significant impact?

• Paramount and CBS

• Apple TV and HBO

• Disney and Warner Brothers

• Amazon and Hulu

What is the expected impact on Netflix's domestic subscriber growth due to content loss?

• Stalled growth

• No change

• Immediate decline

• Rapid increase

How does the speaker suggest valuing Netflix?

• Based on subscriber count

• Through market share analysis

• Using discounted present value of future cash flows

• By comparing with competitors

What is the speaker's opinion on Netflix's free cash flow in the next decade?

• It will become positive soon

• It will remain negative

• It will fluctuate unpredictably

• It will double every year