The Hype Economy runs on faith -- more on Netflix

I was going to run something on this Bloomberg piece, then life got busy and a few weeks passed and soon a number of other posts (including some about Netflix) were demanding to be written. Then this happened and the following seemed too relevant to put off. [emphasis added]

Just the same, Netflix has been producing more on its own. The company will release 1,000-plus pieces of original programming this year. By the time “The Office” deal ends, Netflix will have at least 3,000 new programs in its library and likely surpass 200 million subscribers worldwide.

“People are missing it,” said [Michael Nathanson, an analyst at MoffettNathanson LLC]. “The loss of back titles will not kill Netflix or slow subscriber growth. It just forces them to make more original content.”

There is no rational argument for this position. Netflix is in the process of losing the shows behind roughly three quarters of its viewer-hours. It is maxed out on production without clear ownership of many of its most popular originals (such as She-Ra). It is spending at an unsustainable pace. It's about to fall into the ultimate competitive wood chipper.

Faith-based investing can keep things going a long time, but eventually reality-based results make doubter of us all.