Netflix

Netflix Prices Are Going Up Again, Here’s What You Need to Know

January 16, 2019 By Amanda Stewart Leave a Comment

Nearly 60 percent of Americans use a streaming service for entertainment in their homes, most of who subscribe to Netflix. While cutting the cord initially saved viewers money, Netflix prices are continuing to rise. The company announced the largest price hike in its history this week.

What You Need to Know About the New Netflix Prices

Netflix will be increasing subscription prices by 13 to 18 percent. The company’s most popular plan will now cost about $156 per year, up from $132 per year. The month-to-month cost of the site’s most popular package will increase $2 (from $11 to $13). Basic plans will also increase from $8 to $9.

The most expensive Netflix plan now comes at a cost of $16 per month. Compared to other streaming services, this is pretty pricey. Hulu costs around $12 per month, Amazon Prime comes in at $9, and services like CBS All Access are priced around $10 a month. Netflix has sound reasoning behind the increase in price though.

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members,” a Netflix spokesperson said. Immediately, the increase will impact new users. Any changes made to existing users’ accounts will be made over the next few months.

The latest price hike joins a string of increases made by the company. Netflix has upped its prices twice in the last two years. Is the latest price increase a sign that things aren’t going so well for the company?

The Future of Netflix

You don’t have to worry about Netflix going anywhere any time soon. The streaming platform added 7.4 million customers in the first quarter of 2018. On top of that, Netflix is continuously investing in new content and Netflix originals series.

Netflix originals television shows like Strangers Things, Orange is the New Black, and Hemlock Grove have all been hits. Additionally, Netflix films have seemed to do well. Bird Box starring Sandra Bullock has been one of the most sensational (and successful) original films the company has produced. However, this original content does come at a price.

Because the company’s executives are constantly investing more in the quality and content, it is inevitable that customers will have to pay a higher price. Not to mention, Netflix frequently taps into the debt markets occasionally. Increasing the price for streaming can help ease concerns of investors who have been worried about an ever-growing cash flow deficit. The company reported an expected negative free cash flow of $3 billion in 2018 and expects to see similar results this year.

Money being spent hasn’t gone to waste though. Last quarter, Netflix reported it had more than 137 million subscribers globally. Investors aren’t concerned about the price hike impacting those numbers either. After announcing pricing would increase, the company’s stock went up $22.

It is difficult to say what the future of Netflix is. In fact, the company could look completely different a year from now. There is no doubt it will continue to change its streaming options and there may also be new pricing platforms introduced at any time.

What Do You Know About FANG Stocks?

August 16, 2018 By Tamila McDonald 1 Comment

A term coined by Jim Cramer, the host of CNBC’s Mad Money, FANG is an acronym. It represents four of the best-performing technology stocks on the market: Facebook, Amazon, Netflix, and Google. Some investment experts also include Apple in the mix, adjusting the term to FAANG.

While Google now operates under Alphabet, Inc., a change made in 2015, the term FANG stuck around. It is easy to remember, and the companies it represents are highly recognizable. Plus, all of these stocks continued to perform over the years, allowing the term to stay relevant and join the common investing lexicon.

Whether you were aware of FANG as a concept before, you likely are aware of the stocks it represents. However, you may not know how powerful investing in FANG stocks can be if you are willing to buy and hold.

The Earning Potential of FANG Stocks

While no stock is a guaranteed safe bet, FANG stocks, by and large, have outperformed the overall S&P 500 and NASDAQ 100 Index. Since technology has become an increasingly important part of everyday life, and these companies tend to be innovators in the tech space, their products and services have led to strong performances.

One analysis showed that, if a person invested approximately $3,250 over the course of the summer of 2014, in a single FANG stock, by 2017, the investment would have been worth the following:

Facebook (FB) – $23,189
Amazon (AMZN) – $39,148
Netflix (NFLX) – $45,317
Google/Alphabet (GOOG) – $20,176

While the total investment represents an incredibly small stake in each company, the gains are significant.

It’s important to note that past performance does not guarantee future growth. For example, Yahoo had substantial gains in the late 1990s, after going public in 1996, but was damaged in the dotcom crash. Since then the company’s value fluctuated, at times dramatically, and never surpassed its 1999 peak.

However, the numbers above are a prime example of how investing in the right companies, even on a modest level, can be especially effective when it comes to reaching your financial goals.

The Tech Stock Landscape in 2018

Over the course of 2018, the tech industry has seen it’s fair share of challenges and even scandals. The Facebook / Cambridge Analytica scandal rocked the social media giant, and questions about the companies decisions in relation to the 2016 Presidential Election further harmed the company.

In July, Facebook lost approximately $120 billion in market capitalization in a single day. The stock closed with a loss of 19 percent. However, many financial experts believe that Facebook will recover. The company has experienced significant losses only to bounce back. It’s positioned as the leading social media platform. This provides it with some longevity, giving Facebook a chance to ride out the storm.

On August 2, Apple hit a value of $1 trillion, marking a major milestone in the market by being the first publicly traded US company to do so. Over the course of 2018 alone, the company had gains of 22 percent.

Amazon is likely not far behind Apple. The online retailer crossed $900 billion in July, a feat Apple achieved in November 2017. With Amazon making key acquisitions, including Whole Foods, and continuing to dominate the retail landscape, the potential certainly exists for the company to do the same.

Some financial experts actually believe that Google/Alphabet Inc. is undervalued at this time. They are making significant strides in artificial intelligence (AI). Plus, the Waymo driverless car is making headlines for its possible impact on the vehicle industry.

Is There a FANG Stock Bubble?

While FANG stocks largely experience positive returns, especially over the long-term, some financial analysts believe it’s a bubble; one that could burst at any time.

FANG stocks have high valuations coupled with low volatility, even with some of the recent scandals. Some liken the astounding growth to the dotcom bubble in the 1990s. This leads a portion of the experts to wonder if a crash is imminent.

However, other financial analysts disagree. They believe the growth is sustainable, especially if they continue to innovate in the tech space. Advances like AI and machine learning could bolster future gains. Additionally, new tech discoveries occur regularly, and hardware improvements can also increase a company’s value.

Should You Invest in FANG Stocks?

Often, the biggest question on investors’ minds is whether they should invest in FANG stocks. While no investment is a safe bet, FANG stocks still have a lot of potential.

When a big-name company like Facebook experiences a significant loss in value, this could represent a buying opportunity. However, that is only the case if the company has the ability to recover.

If you choose to take advantage of a low point, educate yourself about the FANG stock. Monitor their earnings statements, look for details about emerging products and services, and keep an eye on legislation that could impact their operations.

Further, if you choose to invest in FANG stocks, it’s still important to diversify your portfolio. Select investments in a range of industries and companies as this lowers your overall risk.

Explore Other Sectors

You may want to explore energy, financial, health care, pharmaceuticals, or even marijuana stocks. Similarly, there are numerous other tech stocks on the market today.

For example, Microsoft has a market cap over $800 billion, but they aren’t in the FANG stocks group. If you want to invest in tech, examine other companies that may experience gains.

While FANG stocks could continue to experience gains, other industries may also have explosive growth. This can make exploring the entire market beneficial. This gives you a chance to find the next company that may skyrocket into a household name.

It’s always important to avoid fixating on a particular niche. This can harm your diversification goals. Plus, overly focusing can lead you to miss out on a stellar investment opportunity in another sector. Which could end up hurting your cumulative gains.

Ultimately FANG stocks still have a significant amount of potential. However, no company is completely bulletproof. Stay informed about your investments and look to a range of industries and companies if you want to make sure that a single stock’s decline doesn’t completely derail your financial future.

Do you invest in FANG stocks? Tell us why in the comments below.

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Health Costs of Binge-Watching TV

July 30, 2018 By Amanda Stewart Leave a Comment

Season six of Orange is the New Black was released on Netflix this weekend. This is sending thousands of people into a weekend of sitting around, binge-watching TV. Although everyone is in need of a restful weekend from time-to-time, there may be some serious health risks to the amount of time we spend sitting – or laying – in front of the television.

Urban Dictionary defines binge-watching as watching an entire TV series in a week or a short period of time. The term rose in popularity around the time Netflix began releasing entire seasons of its television programs at once. Anticipating the return of the show, people began to plan to sit at home, eat, and watch TV.

According to Nielsen, the first episode of the second season of Stranger Things averaged 15.8 million viewers in the U.S. within the first three days. All nine episodes averaged 4 million views, with 361,000 people watching all nine on the first day.

Prior to services like Netflix and Amazon, you waited a week or more in between episodes of a TV show and, usually, you were only sitting there for an hour, at most. With entire television series uploaded to streaming services, you can watch 10 years worth of television in two weeks if you wanted to.

The Impact of Binge-Watching TV

One study found that behavior may actually be bad for your health. Researchers took a look at more than 400 people between the ages of 18 and 25. Each of the participants completed a survey about their TV-watching habits, sleep, fatigue, insomnia, and how long it took them to get to sleep.

Of those who participated in the survey, 80% identified themselves as a binge-watcher. Twenty percent of those individuals binge-watched TV a few times a week over the previous month. More than half said they watched between three and four episodes per viewing, an average of 3 hours and 8 minutes per binge session.

Overall, those who binge-watched TV were 98% more likely to develop insomnia, fatigue, and poor sleep quality, than those who didn’t report binge-watching television. This is because, according to study co-author Professor Jan Van den Bulck, “Binge-able shows often have a complex narrative structure that makes viewers become completely immersed into the story. This intense engagement with television content could require a longer period to ‘cool down’ before going to sleep, thus affecting sleep overall.”

Researchers believe the brightness of the television is what is impacting people’s ability to get quality sleep. Bright screens, like those found on TVs, phones, and tablets, can trick your brain into thinking it is daytime, making it more difficult to fall asleep and stay asleep.

Robert Oexman, director of the Sleep to Live Institute, described, “What happens when you watch television shows, is you watch bright devices like computer screens, TV screens, and that bright light reduces our ability to secrete melatonin.” Because most people are binge-watching in the evening, it can impact their ability to fall asleep and get a decent amount of rest.

The Cost of Binge-Watching TV

Obviously, there are some significant health costs to binge-watching TV on a daily basis. It can lead to a lack of desire for human connection. It can also lead into insomnia. As you may already know, insomnia can lead to decreased awareness, irritability, weight gain, migraines, among other health issues.

It is also costing the American workforce nearly $63.2 billion per year in lost productivity. Every time someone shows up to work low on rest or misses work because they haven’t slept, it impacts their job and, ultimately, their finances.

If you’re already living paycheck-to-paycheck, you can’t afford to put your job in jeopardy by not getting proper sleep. So, how do you combat the adverse effects of binge-watching TV?

What You Can Do

The more direct answer would be to cut down on your TV consumption. Consider having a set amount of time you watch television each day. Outside of that time, try reading a book or performing another activity you enjoy.

You can also change the time you are binge-watching your shows. Instead of watching three hours of Orange is the New Black on Tuesday night before bed, watch it Saturday afternoon or during your time off. Another good alternative is finding time during the day to watch television if you can.

If you find yourself tied up in a show for a little while, plan to do something fun with friends afterward. Going out and interacting with others, and getting away from the TV screen, can help in counteracting any adverse effects of binge-watching TV.

All in all, combating the negative impact of binge-watching TV is as simple as turning the television off from time to time and getting good rest. Don’t let your relationships or your finances suffer just because Netflix made a good show.

Readers, have you suffered from any of the adverse effects of binge-watching TV?

What Is Guillermo Del Toro’s Net Worth?

March 5, 2018 By David Robson Leave a Comment

The Shape of Water, the latest film from visionary director Guillermo del Toro, just won four Oscars, including Best Picture and Best Director, and has made $126.4 million at the box office so far. But what is Guillermo del Toro’s net worth?

Guillermo del Toro's net worth

His net worth is estimated at $40 million. He is perhaps the most famous and financially successful Mexican filmmaker, and among the best-known directors of horror and fantasy films.

But he achieved that position after more than two decades of hard, passionate work spent honing his craft and working on a huge number of projects.

His Directing History

His first feature as director, Cronos (total box office: $621,000), introduced to the world a bold and distinct new voice in fantasy cinema. He turned that initial success into a steady, busy career, alternating between Spanish language films (including the acclaimed fantasy Pan’s Labyrinth, which earned $83.3 million at the box office) and Hollywood franchise films such as the vampire actioner Blade II (box office: $155 million) and the Hellboy films (combined box office: $260 million).

Del Toro’s Pacific Rim, a high-budget tale of giant robots battling huge monsters from another dimension, brought in a whopping $411 million at the box office.

His recent work has taken a more adult turn, including works like the Gothic romance Crimson Peak (box office: $74 million) and The Shape of Water — which in addition to winning four Oscars also gave del Toro his first Golden Globes win earlier this year.

Diversified Career

Naturally much of his current net worth comes from his being an Oscar-winning director, but the fact is he’s incredibly diversified. As side hustles go, being a movie producer (of things like Kung Fu Panda 2 and 3, which brought in over $1 billion at the box office combined) is more lucrative than most. And his Emmy-winning Trollhunters series is Netflix’s most-watched youth-targeted show.

As an author, he co-wrote a trilogy of novels and turned them into the long-running television series The Strain. And those novels have been translated into multiple languages, as well. Factor in the art-heavy books he releases as a writer and artist, and he’s comfortable off his author earnings alone.

As for his assets, del Toro owns multiple houses: one in Toronto, his second home and favored work city, and three houses in Agoura Hills, CA (average price: $1.02 million). Two of them hold his substantial collection of horror and fantasy memorabilia; this collection recently completed a tour of three museums in the exhibition “Guillermo del Toro: At Home with Monsters,” and must itself be considered an asset.

Lessons from Guillermo del Toro’s Net Worth

His incredible career trajectory is the perfect illustration of the principle: Follow your passion. As one goes deeper into del Toro’s writing about the monsters that obsess him, it’s hard to imagine him becoming anything else. He has often put his directing salary (the guild minimum is about $220,ooo per movie) toward the effects of his movies to achieve his vision (though his movies are successful enough that he earns his salary on the back end). He will almost certainly continue to do this when needed, and be sure, his salary and his net worth will definitely increase as a result of his Oscar wins.

Also remarkable is del Toro’s persistence. Some of his projects were too big to execute, or too weird to find financing, but he hasn’t let those setbacks keep him from moving forward (or sideways, on other work). He’s also backed away from deals that haven’t worked for him; his second feature, Mimic (box office: $25 million) was taken from him by the Weinstein Company, and he vowed never to work for them again (a smart decision, given recent events).

Finally, del Toro himself exhibits a warm personality that has endeared him to his fans, and his collaborators are constantly sending messages of friendship and respect over social media. He has reaped huge success while maintaining artistic integrity, while amassing an enviable net worth. Such success could not have happened to a nicer guy.

Netflix Parental Leave Plan Sees Another Huge Change

December 15, 2015 By Amanda Stewart 1 Comment

Netflix is one of the most progressive companies in the United States, and it has just taken another huge stride forward for the working parents it employs. The company announced in August of 2015 that it would offer up to 12 months of paid leave for new parents. However, this would apparently only benefit salaried employees, but Netflix is now saying that in 2016, the paid leave for parents will be extended to its hourly employees as well.

When Netflix made its announcement in August that it would give its salaried employees up to an entire year of paid parental leave (maternity, paternity leave), many people pointed out that this left out entire sections of the company. Most importantly, it left out its hourly employees. Now, the company is reversing its decision and extending the paid leave to all of its employees (hourly and salaried).

In 2016, Netflix’s hourly employees will also get paid leave for their children. Hourly employees, like salaried employees, will receive 100 percent pay for their leave. The amount of time allowed for each employee will vary depending on what section of the company they work within.

The following sections of the company will be able to receive fully paid maternity and paternity leave: streaming, DVD and customer service.

Here is how the changes affect each section of the company and its employees:

Streaming: 16 weeks for maternity, paternity and adoptions at full pay. Previously, the company didn’t cover paid leave for paternity and adoptions. In the past, maternity disability pay was all the company covered, at ⅔.
DVD: 12 weeks for maternity, paternity and adoptions at full pay. Previously the company didn’t cover paid leave for paternity and adoptions. In the past, maternity disability pay was all the company covered, at ⅔.
Customer Service: 14 weeks for maternity, paternity and adoptions at full pay. In the past, maternity disability was all the company covered, at 60 percent of pay. Previously the company didn’t cover paid leave for paternity and adoptions.

In the announcement, Netflix noted that “benefits vary depending on decisions made by the leadership of those parts of our business as well as the competitive landscape for each.” And, while the hourly employees are not receiving the 12 months paid leave like salaried employees, 12 to 16 weeks paid leave is extremely uncommon among hourly employees in the U.S.

However, the U.S. is one of the least-generous countries when it comes to paid parental leave. Many others countries require medium and large-sized companies to provide at least 16 weeks paid parental leave for their employees. For salaried workers, parental leave is often part of the most competitive packages in the U.S. Oftentimes, hourly employees are forced to take a few unpaid weeks off from work after the birth of a child and required to head straight back to the office. As Netflix has added to its benefits for its hourly employees, there may be significant changes in companies throughout the nation.

Should Netflix Limit Its Vacation Time?

November 4, 2015 By Amanda Stewart 2 Comments

Netflix has recently made the news because of its open policies like its “unlimited” vacation. Reed Hastings, the company’s CEO, just got back from his six week vacation and says that he is an example for the company. However, many people are saying that the company should ditch its loose policies.

Should it just be six weeks?

Hastings said that he take six weeks off every year as a part of the company’s rather vague “unlimited” vacation policy. Why not just offer six weeks?

The company’s CEO said that he does his best thinking when he is on vacation. “Just as you would expect, you often do your best thinking [when] you’re off hiking in some mountain,” Hastings said.
Compared to the other employees in the company, Hastings takes the longest amount of time off. Other employees at Netflix take an average of three to five weeks off throughout the year. Although the idea of unlimited vacation seems very generous, it would be more wise for the company to simply offer six weeks. It doesn’t really seem like any of the employees are taking advantage of the “unlimited” time off they can cash in.

The average American’s vacation

It seems U.S. workers are pretty restrained when it comes to vacation anyway. Usually, 40 percent of Americans with paid leave do not take all of their available days off, so it is no wonder that Netflix’s “unlimited” policy goes unused.

By enacting a clear vacation policy, Netflix employees may take more time off. This would make it so that non of the company’s employees feel bad about taking more time off than another person. If there is, say, a six week limit, employees can take up to six weeks off and not feel bad about it.

Welcome change

Though Netflix’s current policy is refreshing compared to other large companies across the world. Many CEOs are collapsing under pressure. BMW’s CEO Harald Krueger fell onstage at a motor show in September after extensively traveling on business trips for the company. The United Continental chief Oscar Munoz had a heart attack after weeks of stress.

However, it is not likely that Hastings will ever collapse under pressure because of his unlimited amount of time allowed away from his day-to-day responsibility, but it may benefit the workers of the company if Netflix made its vacation time a little more clear.