I have been watching all the media reports about Netflix, Inc. lately, and it seems like everyone has some sort of opinion that they are giving on the stock price.
Even the media reports are contradictory to each other. Nevertheless, I am not here to argue about whether the stock price is “good” bad”, or even whether Netflix is a good idea, but only to talk about why they were successful in a way that television networks were not able to.
In the past, I have been guilty of reading all the media reports about a company, then thinking that I had understood everything, when in fact I did not. Recently I heard an interesting story about one of my children’s friends, about how she felt about Netflix. She said that she was “not a big fan” and that she would rather “wait a couple of years for movies.”
I am sure this has not surprised me at all, because I have read so many media reports about how bad a company Netflix is, but the real news is that she had never even heard of it. So let us try to figure out what is going on here. Let us find out how Netflix, Inc. managed to get noticed.
The fact is that most of the media reports about a company are the product of people writing to the companies themselves, or to journalists who interviewed them. Many of the journalists are paid by the media companies to write the articles. So in the case of Netflix, the writers were all journalists, and so were the executives. So they cannot be blamed for writing whatever they want to write about.
The media reports give a very inaccurate picture of what a company does. When they are done with that inaccurate picture, they either write a positive story about a company or at least focus on the negative aspects of a company. In the former situation, the writer or reporter is telling the media they want the company to succeed, and they do not care if they made the mistake of covering it up.
If you’ve been reading media reports about companies, you might have noticed that most of them are written by people who happen to work for the company and don’t know anything about the company. If they had any knowledge of the company or about the business they would probably make a different analysis. So they have to rely on the writer or reporter who was hired to write the stories for them.
Nevertheless, even if you are lucky enough to find someone who is entirely objective, there is no way to know whether the media reports are based on facts or opinions. I have found in the past that most reporters have an agenda, and so their stories tend to support the goals of the company.
However, in the case of Netflix, Inc., I’ve found that the media reports are different. It is always fascinating to find out what is going on when you do an internet search on the company. It is almost as if the media is against the company and wants it to fail so that they can push through their agendas.
Another exciting thing about these media reports is that it never fails to impress me that no one seems to have any real opinion about them. I mean, if it is possible to make a person believe in something, the people who are making the media reports seem to be doing it.
However, you have to wonder, is there any truth to the media reports? Or is it all just media reports?