Netflix – OTT, what else!

Netflix is the pioneer in OTT video streaming. OTT stands for “Over The Top” and refers to any streaming service that delivers content over the internet. The service is delivered “over the top” of another platform. Given this, Netflix is expected to emerge as one of a few global “anchor tenants” in consumers’ video bundles. The company is facing subscriber growth headwinds due to the continued pandemic overhang, developed market saturation, and competition. Netflix should be able to achieve its long-term subscriber and margin growth targets in the face of these challenges. Additionally, Netflix reaching sustainably positive free cash flow should aid financial flexibility.