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Aris C's avatar

Hmm, I think you're missing a couple of things though.

First, why does it have to be new content every month? Paramount has a huge library of old content - more than your average viewer can consume. Why isn't that sufficient to retain and acquire customers?

Second, re cheap content, it doesn't have to be cheap in total, it's the marginal cost that counts. Making mission impossible films is ludicrously expensive. Adding them to Paramount+ is almost free. So by this logic, studios should have an advantage over netflix, since the marginal cost of their subscription services are lower.

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Joe Sipher's avatar

Thanks for finally clarifying the economics of streaming. I really never understood it. Netflix spent $18B for new content why? So they retain 98% of their users—an astonishing number. Netflix has really built a content moat. I like the stock 😉.

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