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Netflix Secures International Rights to Studio Ghibli Animated Films:
The iconic animated features of Japan's Studio Ghibli will be available in territories outside the U.S., Canada and Japan on Netflix starting in February. The move is a further change of position for the studio which has repeatedly resisted the idea that its beloved cartoons would be released on digital platforms.
Netflix, sales agent Wild Bunch, and Studio Ghibli, which counts Hayao Miyazaki as one of its leading lights, will upload 21 Ghibli features including Academy Award-winner "Spirited Away," "Princess Mononoke," "Arrietty," "Kiki's Delivery Service," "My Neighbor Totoro," and "The Tale of The Princess Kaguya."
They will be screened in their native Japanese, with sub-titles, and be available globally on Netflix except in the U.S., Canada, and Japan.
"In this day and age, there are various great ways a film can reach audiences. We've listened to our fans and have made the definitive decision to stream our film catalogue. We hope people around the world will discover the world of Studio Ghibli through this experience," said producer Toshio Suzuki at Studio Ghibli in a prepared statement.
[...] "This is a dream come true for Netflix and millions of our members. Studio Ghibli's animated films are legendary and have enthralled fans around the world for over 35 years. We're excited to make them available in more languages across Latin America, Europe, Africa and Asia – so that more people can enjoy this whimsical and wonderful world of animation," Aram Yacoubian, director of original animation at Netflix, said.
(Score: 2) by Mykl on Thursday January 23 2020, @08:56PM (11 children)
That third article you linked (fool.com) actually explains that Netflix is still operating at a loss, and that earlier estimates that it would be cash-flow positive by 2022 may have been optimistic.
Key quotes from linked article:
(Score: 2) by DeathMonkey on Thursday January 23 2020, @09:24PM (10 children)
Profit and free cash flow are not the same thing. [intuit.com]
(Score: 0) by Anonymous Coward on Thursday January 23 2020, @09:28PM (4 children)
Lol, there is just no helping you. Why are you looking at profit when it is not relevant to Netflix's business model (which amortizes cost over up to a decade)?
(Score: 2) by DeathMonkey on Thursday January 23 2020, @09:36PM (3 children)
Consider this scenario:
I buy a house with a loan.
I rent that house out to someone who pays me enough to cover the mortgage, all taxes, all maintenance, and still pocket $100 dollars at the end of each month.
Am I making money or am I losing money?
Because, purchasing that house put me at negative cash flow.
But, the $100 of profit per month is still going into my bank account.
(Score: 0) by Anonymous Coward on Thursday January 23 2020, @09:58PM (2 children)
Great analogy for making $1.8 B and buying $14 B worth of stuff while taking out a $4.5B loan.
(Score: 2) by DeathMonkey on Friday January 24 2020, @12:31AM
Or an accurate portrayal of how nearly every business on the planet funds expansion.
(Score: 2) by krishnoid on Friday January 24 2020, @06:31PM
Don't forget the insurance fraud [schlockmercenary.com]!
(Score: 2) by Mykl on Thursday January 23 2020, @10:24PM (4 children)
Sure, but Netflix are burning a lot more money than they're making. In most people's assessment, that means they're losing money.
Just to make sure we're on the same page here - do you agree that Netflix is spending more than they're earning right now? Call it investment if you will - but do you agree that more money is going out than in at the moment?
Your house analogy is an interesting one. Borrowing money for an investment property is not a bad idea, as the value of your initial investment (the property) usually increases over time while you also hopefully make an operating profit in the short term. In Netflix's case, the money they pour into making new shows is not nearly so long-lived. Those investments do not become more valuable over time - they rapidly diminish in value. Netflix really needs to recoup their money on making shows quickly, as they are earning less from those titles every year now (where 'earning' for them means 'attracting new subscribers or keeping existing subscribers' because of the presence of that show). I enjoyed Orange is the New Black, but I've watched it now - it does not keep me tied to Netflix any more.
This is what investors are worried about. If Netflix can't demonstrate a plan to consistently earn more from each investment they make over the long term, then they can't show a path to long-term profitability. Right now, they are spending more on making shows than they are earning from those shows.
(Score: 2) by DeathMonkey on Thursday January 23 2020, @10:38PM (3 children)
No, I don't. The only actual money going out are the loan PAYMENTS, not the total amount of the loan or the amount that loan allows them to spend. And if they can cover those payments plus all the other costs associated with running the business and have money left over that's profit, aka, making money.
Whether or not they have too much debt is a perfectly reasonable worry. However, it doesn't affect whether they are currently making money or not.
(Score: 1, Informative) by Anonymous Coward on Thursday January 23 2020, @11:17PM (2 children)
Nope, ~$600 million in interest payments went out in 2019. About 20x that ($14 billion) went out for content creation.
(Score: 2) by DeathMonkey on Friday January 24 2020, @12:20AM (1 child)
This is accounted for in the operational costs(e.g. subtracted from profit): Nope, ~$600 million in interest payments went out in 2019.
This is the loan they are paying the interest on: About 20x that ($14 billion) went out for content creation.
(Score: 0) by Anonymous Coward on Friday January 24 2020, @12:49AM
Nope, net income (profit) is an input to free cash flow, not vice versa.