Mature Business Means Slower Growth, but Netflix Remains the Clear Leader in Subscription Streaming

Netflix is the leading subscription streaming television platform globally and enjoys the economic benefits of this scale. We expect this position to persist. Netflix did not need Warner Bros., and at the price to which it agreed, we thought it would be value-destructive. However, we do think it needs to move beyond its core business of selling Netflix subscriptions if it wants to reaccelerate growth.