Tuesday, April 8, 2014

Netflix's $2.8 Billion Moat

In the following video, Fool contributor Demitrios Kalogeropoulos discusses how Netflix (NASDAQ: NFLX  ) manages to spend close to $3 billion a year maintaining its streaming video service. By pumping cash into the content library, global marketing, and service delivery, Netflix has built up an investment pace that few companies can match, Demitrios says. 

The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

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