Netflix, Inc.
Thesis
The investor gained confidence to invest in Netflix after realizing that legacy media companies like Time Warner were not willing to compete effectively against it. Netflix's ability to raise prices in a no-inflation environment indicated its strong market position.
Did it work?
worked
confidence: low
No price data is available, so the verdict rests on the thesis's own dynamics, which were subsequently validated: Netflix repeatedly raised prices with minimal subscriber churn, confirming the pricing power the investor identified, while legacy media failed to mount an effective competitive response (Time Warner itself was absorbed via acquisition rather than competing head-on). However, because the pitch date is unknown and no return can be measured, confidence remains low.