“Content is king” is now the prevailing mantra in subscription businesses. Investors will casually remind you whenever they need to feel good about their positions.
But they forget that there’s no content without money. And very few companies can stack their wallet side by side with Apple‘s (NASDAQ: $AAPL) and feel confident.
To that end, while Netflix (NASDAQ: $NFLX) does have a strong content library, the stock has traded as if that library is filled with history books. Investors have begun to wonder if there’s a future. Netflix stock closed down 2.13% Tuesday at $370.84. Although the stock is up roughly 1% on the year, shares have plummeted 13% in two days. Investors aren’t wasting time.
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Apple reportedly is in talks with Comcast (NYSE: $CMCSA), the nation’s largest cable provider, to reinvent the way consumers watch television. Reports suggest that both companies are negotiating terms on a joint streaming-television service using an Apple’s set-top box, currently known as Apple TV. In return, Apple wants “special treatment” on Comcast’s public lines.