It’s a question that comes up often when discussing Netflix’s growth, but it’s also a question Netflix CEO Reed Hastings has struggled to answer.
The streaming service has made a lot of noise about the billions of dollars it’s made and how it’s going to grow.
And it seems to be working.
Netflix has grown in every country where Netflix operates, according to its latest earnings report.
Netflix also reported the largest revenue gain for a streaming service in the history of the company.
But Hastings is now worried that a billion dollars may be a little much.
“There are two ways to grow,” Hastings told reporters.
“One is to keep going and keep growing and keep adding to your catalog.
The other is to let people buy movies, TV shows, books and other products that they enjoy.
And that’s what we’re doing.”
Hastings was asked about the billion-dollar question, and he seemed to acknowledge that Netflix may be doing a lot more than just building the service that’s currently in more countries.
“We are not spending billions and billions and trillions and trillions of dollars every single year to keep expanding,” he said.
“We’re going to keep doing the same thing.
We’re not going to spend $1.5 billion a year to do more.
And so the only way we’re going get to $1 billion in revenue is to do what we’ve been doing.
We have a catalog that is the best, and we have to keep adding more movies, more TV shows.
We’ve got to keep buying books and movies.
We just have to make sure we keep building that catalog.”
Hastens is also worried about the growth of the streaming service’s subscription fees.
The fee is one of the biggest issues Netflix faces as it tries to stay competitive with Amazon and other streaming services.
In its last quarter, Netflix had an estimated $5.5 million in net profit and a net loss of $4.2 million.
That means the company earned $4 billion in net revenue.
But there’s another issue with Netflix’s numbers: its subscription fees have gone up in recent years, and Hastings said he’s concerned about the future of Netflix’s revenue model.
If you look at the first three quarters, there’s a lot less than $500 million in revenue, which is less than 10% of what we have in the third quarter.
So the question is, are we going to continue to be able to make money and keep increasing revenues and keep building our catalog, or are we not going be able continue to do that, and are we gonna have to shut down the entire catalog, shut down all our customers, shut the whole thing down?
And that would be a disaster for us.
And he added that Netflix has to be careful with how it grows and how much money it can grow.
Hesons also reiterated his belief that streaming services like Netflix will be able grow even faster than Amazon or other streaming companies.
He said the company believes it can achieve the kind of revenue growth that Amazon has achieved in the last three years.
And if it can’t, he believes that it will eventually see a decline in revenue.
“There’s not a huge amount of money that we don’t want to grow, but the growth we’re seeing right now is very different than the growth that we’re planning on in the next five years,” he added.