| Summary: | Netflix’ subscriber numbers haveincreasedby11.1%between 2019 and 2021. Its revenue has even grown by 50.0%in this period. The company’s future performance is highly dependent on retaining the newly won subscribers during the COVID-19 pandemic and offering high quality original content to attract new users in order to maintain the position as market leader in the streaming industry. We think NFLX has clear opportunities to further boost subscriber numbers through1) continuing to produce high quality original content;2) incorporating gaming into its business model to attract a further user segment; 3) introducing an ad-supported subscription model .We see NFLX’s future performance threatened by certain risks, particularly 1) competitive offerings from Disney+, Amazon Prime Video, HBO Max and others (streaming wars) develop not abletr action and impact NFLX subscriber growth; 2) the original content underperforms in terms of quality and user satisfaction; 3) NFLX struggles to maintain positive FCF.
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