28.04.2020 NETFLIX Daily Analysis

28.04.2020 NETFLIX Daily Analysis

Today Netflix is trading at $421.38 (-0.85%). Like every major media company in the world, it has halted production on most of its shows and films amid the coronavirus pandemic. With productions halted, Netflix expects its cash spending to come in much lower than originally expected for 2020. It originally anticipated a negative $2.5 billion in free cash flow for the year, but management now expects cash burn to total less than $1 billion. In other words, it's suspending about $1.5 billion in planned content spend for the year -- about 10% of its $15 billion content budget. Netflix's binge-watching release strategy is a saving grace for the company right now. Releasing every episode at once means the timeline from when Netflix starts productions to when it releases shows is typically very long. Production studios releasing episodes over several months may have much shorter windows between when a series begins filming and when the first episode debuts.