Some Numbers Looking to the Next Big Thing!

I have been watching Orange is the New Black,a Netfix original series. (It's extremely well written and acted). I began to wonder how an streaming company could afford to produce a quality series on its own and just for its own members at a charge of $7.99 a month per subscriber.

This led me to the old reliable Goggle, which as always has the answers. I was astounded. Netflix has 29.2 million subscribers, as I speak. Holy Cow, I did some quick calculations. That's $233.6 million per month or $2.8B a year.  There primary investment is the streaming technology. I have no idea how it works or how much it costs to get that capital streaming equipment in place, but it seems like once its up and running its an ongoing money machine, with not a lot of overhead. However, they are looking to the future and investing in their own content. The acquisition of existing content is an ongoing expense, and I have no idea what the royalty arrangement is made on the content developed by others. So the Next Big Thing is a little child, that can only grow in the new world, and I like it.

I'm thinking I should buy some stock and put my money where my mouth is. It is currently trading at about $266 per share and has ridden up on a steady pace ever since the disastrous change in billing system that tanked the stock and the membership bailed in huge numbers. I was one of the droppers. I'm back and am thoughly enjoy Breaking Bad and Orange is the New Black.

This is only one piece of the Next Big Thing. Almost the entire Tech Industry is looking for a path to the future and the Next Big Thing. Their past history shows they know how to do it. Think the broad use of the internet is only about 25 years old. the Smart Phone is amazing, yet barely out of puberty. It's almost yeaterdays news. Apple is still my favorite because they have had a true glimpse into the future in the past and executed the vision of Steve Jobs. Google is a close second. The Tech world changes the world. I try to keep up with it but I fall behind as soon as I understand the present.

It's all all about content and how it is delivered.

It's going to be a fun ride.

Have a nice day.

Samuel C. Arnold
Man of the 21st Century