If You'd Invested $500 in Netflix 10 Years Ago, Here's How Much You'd Have Today

Core Insights - Netflix was initially viewed as overvalued in 2015, facing skepticism regarding its cash burn and competitive advantage [1] - An investment of $500 in Netflix stock a decade ago would now be worth $3,834, significantly outperforming the S&P 500, which would have grown to $1,659 [2] - Netflix's dominant market share in the streaming industry has provided it with a substantial competitive edge [4] Company Performance - Netflix's subscriber base grew from 62.7 million in 2015 to 301.6 million by the end of 2024, surpassing Amazon Prime by nearly 100 million subscribers [5] - The company maintains a low churn rate of 1% to 3%, compared to the industry average of 5%, allowing it to retain more subscribers and increase prices without losing its customer base [7] Industry Context - Streaming has become the most popular way to consume programming, with 83% of Americans using streaming services as of earlier this year [4] - Netflix's early entry and leadership in the streaming market positioned it to benefit from the industry's rapid growth [8]