As if presidency wasn’t challenging enough, America’s most loved power couple has decided to take on movie directing and join with NFLX (Netflix-NASDAQ) to cast their movies/TV shows. The Obama’s have signed a multiyear deal with them to produce a diverse mix of series and, “to promote a greater empathy and understanding between peoples, and help them share their stories with the entire world.”
From recent earning report, NFLX had their strongest quarter by adding 7.41 million more users. Also, raising their subscription prices increased their sales by 40%.
This deal is nothing but positive for the company. Though NFLX has a horrible record of cashflow since 2014 (-$4 Billion), many investors bypass the accruing debt and admire the popularity of the company. Also, let’s not forget the company is projecting to have another $3 Billion added in 2019- dressed in a pretty pink bow in recent shareholders letter as they are headed to a “bright” future.
Though this is a great partnership for NFLX, what will the company do with the increased earnings? How will they continue to benefit their mass customer base and the overall company?
NFLX is expecting to use their “free cash flow” to eventually turn their negatives into positives as their profits grow. Investors hope their new partnerships with the Obama’s will increase their earnings…as it will.