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Netflix plows money back into content – investors grin and bear it

Netflix’s original content strategy is clearly paying off, and so it should at an annual spend of $6.6 billion, with an additional $16 billion set to be siphoned into original investments over the next five years. Yet, despite the celebrations, there has been some concerned noises coming from the investor and analyst communities that prolonged investment in original content at this scale will mean Netflix will be recording negative free cash flows for years to come, with little return. The shareholders would have Netflix convert its original content investments into cash cows – but that could be potentially disastrous. Netflix’s share price soared to over $183 for the first time after its record breaking results were released this week. The…

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