Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered …
Full NFLX analysis →
Competitive advantage assessment
Key strengths
ROIC Sustainably Above PeersROIC at 97.8th percentile exceeds peers and WACC, demonstrating superior capital allocation.
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 91
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 95
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 88
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 82
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 81
· 15% of the moat score
Scale matters only when it converts into economics.
Netflix, Inc. (NFLX) scores 85 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 56 scored companies in Entertainment, the top 2%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 55 companies in Entertainment. Its strongest defense is Customer Stickiness (95/100) and its weakest is Pricing Power (74/100).
How does Netflix, Inc. compare with other Entertainment companies?
Netflix, Inc. ranks #1 of 56 scored companies in Entertainment by moat score. That is the widest moat in Entertainment. The companies ranked closest are Fox Corporation (FOX) at 80 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 55 companies in Entertainment. The defenses are then weighted to produce the overall score out of 100.
Why is Netflix, Inc. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for Netflix, Inc.?
The Corporate Default template measures 6 defenses, and NFLX scores: Pricing Power (74), Cost Advantage (91), Customer Stickiness (95), Capital Efficiency (88), Resilience (82), Scale & Market Position (81). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
We value your privacy
We use cookies to enhance your browsing experience, analyze site traffic, and personalize content. By clicking 'Accept All', you consent to our use of cookies.
Read our cookie policy
Cookie Preferences
Manage your cookie preferences. Essential cookies are always enabled.