Editing Netflix, Inc. (section)

=== Risks related to operations ===

==== Content Acquisition and Production Costs ====
Netflix devotes a sizable percentage of its budget to acquiring and creating unique content. The company's ability to land attractive licencing deals and produce engaging original programming is crucial to its success. Fluctuations in content prices, unanticipated production delays, or the inability to have a wide and appealing content library could have a detrimental effect on subscriber retention and growth.

==== Technological Risks ====
Netflix runs the risk of data breaches, privacy violations, and service outages because it is a digital platform that gathers and processes user data. Legal liabilities, reputational harm, loss of client trust, and regulatory fines could all occur from a company's inability to safeguard user data or maintain the security of its systems. Additionally, service interruptions brought on by technical problems or hacks may cause subscriber dissatisfaction. 

==== Changing Demand ====
The entertainment industry is changing quickly due to shifting customer preferences and technological improvements. Netflix's capacity to efficiently offer content and maintain its audience's relevance could be impacted by changes in viewing habits, the adoption of new devices, and developing technologies. Failure to adjust to these changes or foresee emerging trends could result in a loss of subscribers and a drop in revenue.

==== Net Neutrality and Internet Infrastructure ====
The quality and speed of internet connections used to provide Netflix's streaming material to users directly affect Netflix's success. The quality of streaming experiences could potentially alter as a result of any changes to net neutrality laws or internet service provider policies. Data caps, throttling, or the prioritisation of some traffic may leave users unhappy and have an impact on subscriber retention.