"money is expensive" means that, an investor, given the choice between giving netflix money to buy more customers and putting that into a bond or something starts to lean away from "give this company cheap money in the hope valuation goes up" and towards less "throw money at it and see if that works" investments.
It's not the interest, it's getting the money at all. Money was cheap, so netflix got lots of money, they put blockbuster and hollywood video and all the other companies out of business (mostly) with a great selection of DVDs and whatnot, then they got sweetheart deals from all the studios and production companies who couldn't imagine competing on the bandwidth costs alone; these deals, once again, greased by investor money. Once the major studios started their own streaming services, netflix was throwing investor money at consumer eyeballs with their whole "sharing is caring" model, where you're aunt's ex-husband's golf buddy could use your account credentials.
Now the free money has dried up, and investors want, you know, their investments back. Queue netflix raising prices, disallowing sharing accounts (and charging more for multi-screens); couple that with losing a huge portion of their library to studio streaming services, and suddenly paying adam sandler 100mm for a movie every year or two looks like a bad investment.
It's not the interest, it's getting the money at all. Money was cheap, so netflix got lots of money, they put blockbuster and hollywood video and all the other companies out of business (mostly) with a great selection of DVDs and whatnot, then they got sweetheart deals from all the studios and production companies who couldn't imagine competing on the bandwidth costs alone; these deals, once again, greased by investor money. Once the major studios started their own streaming services, netflix was throwing investor money at consumer eyeballs with their whole "sharing is caring" model, where you're aunt's ex-husband's golf buddy could use your account credentials.
Now the free money has dried up, and investors want, you know, their investments back. Queue netflix raising prices, disallowing sharing accounts (and charging more for multi-screens); couple that with losing a huge portion of their library to studio streaming services, and suddenly paying adam sandler 100mm for a movie every year or two looks like a bad investment.