Wall Street still feels bullish about Netflix’s growth prospects heading into the release of its first quarter earnings results on Thursday afternoon.
But while analysts agree that the company has devised the right formula of balancing global content creation with costs, while increasing profitability, much of the streamer’s growth going forward will depend on how far it can push pricing and paid sharing, and how quickly it can scale the ad tier.
“The big challenge is accepting that they aren’t going to be a high growth company. They’re going to be a low growth, extraordinarily profitable company,” Michael Pachter told TheWrap.