Netflix: pricing power is showing up without churn
The last price increase produced almost no measurable churn, which is the cleanest evidence of pricing power this business has ever produced.
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Discussion · 7
Useful framing. The elasticity decay across the price actions is the tell. Interested in what the kill switch looks like in practice.
Fair challenge. Invalidation is a close below the lock price on volume, and I should have written that into the card rather than leaving it implicit. (795)
Not convinced, but well argued. The mix argument is the part I had not considered properly. Does the same logic apply to the closest comparable?
Fair challenge. Invalidation is a close below the lock price on volume, and I should have written that into the card rather than leaving it implicit. (800)
I have been waiting for someone to make this argument. I had not appreciated how much of this is already in consensus. Does the same logic apply to the closest comparable?
I hold the other side of this. The elasticity decay across the price actions is the tell. How much does this depend on the macro cooperating?
Fair challenge. Invalidation is a close below the lock price on volume, and I should have written that into the card rather than leaving it implicit. (798)