The phrase suggests an evaluation of the monetary assets out there to Netflix, implying a surplus past instant operational wants. This abundance may manifest as extreme money reserves, overly beneficiant govt compensation packages, or vital funding capability exceeding available alternatives. For instance, it is likely to be argued that the size of Netflix’s spending on authentic content material, in comparison with its subscriber progress price, displays such a scenario.
The potential implications of considerable monetary assets are multifaceted. An organization with appreciable capital might be able to climate financial downturns extra successfully, spend money on progressive applied sciences, and purchase competing companies. Traditionally, corporations with robust monetary positions have exerted appreciable affect inside their respective industries, dictating market developments and establishing boundaries to entry for brand new rivals. This monetary power permits for aggressive enlargement and long-term strategic planning.