It has concentrated on driving subscriber growth, and in doing so, created an increasing Free Cash Flow (FCF) deficit. Last year that deficit stood at over $2bn. A new report from Ampere Analysis suggests that an ARPU growth of just $1.68 a month would render Netflix FCF neutral, pleasing recently disappointed stock markets. Here the research firm previews what’s coming next in part two of this unfolding drama.
Ampere Analysis: Netflix profit is a drama of two halves