… that it has created a business model that promotes sustained attention rather than fragmenting it. Its content team draws on its rich trove of customer data to produce shows that are sophisticatedly engaging and long. And this, in turn, allows Netflix to charge subscription fees in lieu of selling advertisements.
…d Facebook. By the same measure, Netflix is an outlier, with its P/E exceeding 240. In other words, investors are willing to bet nine times more on Netflix than on Facebook or Google for every dollar that any of these companies currently earns. Why is that?