alt Hacker NewsWhy is Netflix in the "Big Tech" categorization in the "value in market cap" graphic?
I do not see how Netflix's primary business is any different than the businesses in the "Hollywood" categorization that also pay to make media and then sell it.
Apple and Amazon can be in a different category because making and selling media is an ancillary part of their business. Alphabet does not make or curate any media, it just distributes it.
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Netflix is a streaming platform first and an entertainment studio second.
Its like youtube if youtube red didnt fail
> I do not see how Netflix's primary business is any different than the businesses in the "Hollywood" categorization that also pay to make media and then sell it
Netflix owns distribution and owns+sells VFX and animation services via Eyeline. Most "Netflix orignals" aren't actually produced by Netflix - Netflix just takes a capital stake in a production that was already in the works by an existing production company.
This made Netflix closer to Valve, and allows their IR team to make a valid case that they should be compared against (and thus deserve a valuation) comparable to other tech companies.
My guess is because Netflix gets money from subscriptions, which is a very different revenue model from traditional Hollywood. But again, completely a guess
Netflix pays like a Big Tech company, is valued like a Big Tech company and was part of FAANG. 10 years ago the streaming tech they had was fairly high tech, even if it's now pretty standard. So they're considered Big Tech for historical reason