...- Notwithstanding 2020's unique situation, which will result in healthy free operating cash flow (FOCF), Netflix's FOCF trajectory when production returns to normal levels is better than we previously expected due to stronger operating trends, improving margins, and slower cash content cost growth. - We now forecast that its FOCF deficit will be less than $1 billion in 2021 and could reach break-even within the next two years absent weaker operating performance or more aggressive content spending to acquire and retain subscribers. - We are revising our outlook to positive from stable and affirming all our ratings on Netflix, including our '##' issuer credit rating. - The positive outlook reflects our expectations that Netflix's FOCF trajectory toward break-even is significantly improved due to rapidly improving margins and slower-than-expected growth in content spending. It is also based on our expectation that, despite a return to normal production levels and increased competition from...
