The Conversation: Here’s how Netflix could profit from all the data it collects instead of burning through cash

Even in the wake of a recent mixed earning report and volatile stock prices, Netflix remains the media success story of the decade. The company, whose user base has grown rapidly, now boasts almost 150 million global subscribers.

But as someone who studies the television industry, I’ve always wondered how Netflix NFLX, +4.71% can provide so much unlimited ad-free content for such a low monthly rate, which currently averages around $14.

After all, didn’t MoviePass just fall apart using a similar model of offering ad-free content for a monthly subscription fee? And Netflix is burning through cash, with negative cash flow of $3 billion in 2018 alone.

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