Valuation Analysis Of Streaming Media Industry Based On Netflix

With the rapid development of the Internet technology and terminal technology,video industry of streaming media is rapidly emerging.Against the background,consumers’ attention and entertainment consumption are transferring from the traditional film and television media industry to online video platform.As a typical company of streaming media video platform,Netflix’s enterprise valuation and capital market’s acceptance of this type of company have representative significance for the entire film and television media industry.Taking Netflix as an example,this paper intends to evaluate its corporate value,in order to analyze the emerging business model and development prospects under the contemporary background,and provide relevant reference for investors’ investment decisions.Case analysis method and normative analysis method are the main research methods of this dissertation.The analysis of Netflix mainly includes three parts.First of all,the dissertation makes a survey of the main business of Netflix and the characteristics of the American media industry,revealing that the whole industry has experienced three obvious changes in the era of broadcast television,cable television and Internet.At present,traditional TV companies,technology giants and entertainment giants with content advantages are actively transforming themselves to layout the streaming media video platform,making the competition is fierce in the market of streaming media video platform.Secondly,the dissertation analyzes the internal characteristics and financial data of Netflix.In terms of internal operation,Netflix is good at using high technology to provide users with extraordinary and excellent movie-watching experience.At the same time,it is able to produce high-quality content by itself and exploit the double competitive advantage of "content + users" to expand the global market.In terms of the company’s financial data,due to the large investment in the early stage,long return period,and more debt and intangible assets amortization,the company generally presents the characteristics of high asset-liability ratio,negative operating cash flow,but strong growth.At last,based on the financial data of Netflix,the dissertation uses three methods,including DCF prediction,multiplier prediction and residual revenue model prediction,to evaluate the enterprise value.Based on the results of the three valuation methods,it is believed that the stock price of Netflix is likely to be overvalued.The results also indicate that the existing investors hold a positive attitude towards the growth of the company in a certain period of the future.Considering that the valuation results reflected by financial characteristics are insufficient,more comprehensive and in-depth analysis should be made to make a scientific investment decision.