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Thousands threaten to quit Netflix
- Thread starter PICK3
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redshirt27se
New member
grab the cash while you can.. netflix will be dead soon enough.
Everyone that I know who shorted or bought puts on NFLX has gotten pwned. I wouldn't count them out just yet.
redshirt27se
New member
they offer a service that everyone else can offer. if it weren't for the unlimited streaming they'd already be done. streaming videos is very easy to do, only a matter of time before companies stop licensing their movies out and just do it themselves. it's already slowly happening for free at the expense of ads. combine that with the potential for the big media giants to also offer music, etc.Everyone that I know who shorted or bought puts on NFLX has gotten pwned. I wouldn't count them out just yet.
it was a good run, but they are fucked. a price hike seems to show that IMO.
redshirt27se
New member
Probably nothing. I'm not as liquid as I'd like to be at the moment.Excellent argument. What strike puts do you plan on buying?
To be fair, I haven't looked at they're books... or even know how to value a company like this... just saying that they're company might be in a stronger financial position than us laypeople might think.
PICK3
New member
To be fair, I haven't looked at they're books... or even know how to value a company like this... just saying that they're company might be in a stronger financial position than us laypeople might think.
*their
redshirt27se
New member
*thayer
redshirt27se
New member
it will presumably be the big studios if i had to guess. i see DVD sales slowly tapering off and the studios will need a way to replace the lost revenue. factor in that if you want to watch some movie from 1995, they can selectively market trailers for new releases and/or other products relating to the title at no cost to them, or sell to third parties for more profit.
PICK3
New member
redshirt27se
New member
i have no idea how they are doing. i would assume the fallout from all these outraged customers won't be nearly that big. people love to bitch, but don't like to actually do anything. i'm assuming (and that's all it is) that they are fine financially but see the writing on the wall and are trying to line their pockets while they can.To be fair, I haven't looked at they're books... or even know how to value a company like this... just saying that they're company might be in a stronger financial position than us laypeople might think.
L
lartinos
Guest
They didn't have an option of getting 3 movies out at once without their shitty streaming so I lowered my plan to 2 DVD's and I'm joining back up at Blockbuster as they lowered their prices.
PICK3
New member
gay pr0n subscription next?
Agreed, but from what I've read, they don't have any competition capable of stealing a significant share of their market ATM. I'm sure their aware of the potential future states of they're market and have invested heavily in IP and regulatory in-house council for patent litigation and Sarg-Ox work.
The 80+ foward P/E of the company prices in an indefinite and near-infinite growth phase for a nouveau tech company, reducing the problen to a time-dependent exercise in market timing, M&A strategy, and price-to-book value extrapolation of DCF... IWO, not something I would hold long without downside insurance, especially ITE.
PICK3
New member
me too, butt I need offerings that include midgets and ponies and shit
I cancelled everything. Use the internet from neighbors wifi and torrent all my movies and shows. Dont pay shit.
finish the app dammit
Working on it right now actually. Installing another version to test the bugs on my phone.
quick ? what type of phone are you using an what version of android?
Your phone sucks
well then, guess what I'll be doing tonight
i get lazy about shutting off the auto payments, got suckered into months of porn websites after the 3 day trial expired
redshirt27se
New member
jackangel
New member
got the email. annoying. since i haven't actually requested a dvd/blu-ray in the mail for 7 months, i went down to 2 DVDs at a time. now, i might cut that out entirely, but i like having the option.
i would cancel the shit altogether, but until they're's a viable alternative, i won't. i use torrents, but i can't depend on constantly searching and downloading shit. must have content readily available. also,with my particular setup, there's always buggy shit with the torrents i get...don't know if it's PS3 media server or windows on the laptop, or what...too lazy to try and fix it. shit often does not work as intended.
as for shorting NFLX...there's usually a disconnect/delay between fundies and market action. i agree thair days are numbered, and i despise bullshit stocks that go to the moon (CMG anyone?), but i can't fight the forces at work in the market. this stock is at all-time highs, and will likely go higher, but i'd peg it to the overall market. once the market in general is ready for a big correction (or death), and the smoke and mirrors no longer cut it...stocks like NFLX will be up against the wall. but timing is treacherous. it's very likely that it will be much lower in 6 months or a year, but whotf knows.
of course, i've gambled away all my money, so FML.
i would cancel the shit altogether, but until they're's a viable alternative, i won't. i use torrents, but i can't depend on constantly searching and downloading shit. must have content readily available. also,with my particular setup, there's always buggy shit with the torrents i get...don't know if it's PS3 media server or windows on the laptop, or what...too lazy to try and fix it. shit often does not work as intended.
as for shorting NFLX...there's usually a disconnect/delay between fundies and market action. i agree thair days are numbered, and i despise bullshit stocks that go to the moon (CMG anyone?), but i can't fight the forces at work in the market. this stock is at all-time highs, and will likely go higher, but i'd peg it to the overall market. once the market in general is ready for a big correction (or death), and the smoke and mirrors no longer cut it...stocks like NFLX will be up against the wall. but timing is treacherous. it's very likely that it will be much lower in 6 months or a year, but whotf knows.
of course, i've gambled away all my money, so FML.
jackangel
New member
Just called my cable provider to cancel expanded cable back to basic which I paid $95/mo for. They offered me the same package for $71/mo for 12 months to include internet.
Still get to watch UFC on SPIKE
stop mo'ing up this thread
calveless wonder
New member
redbox
PICK3
New member
hahaha do it!?!!?
that's you, Cindy?
lol no it's sookie from true blood
PICK3
New member
PICK3
New member
what...not the cawk because you are geigh
She got on my nerves first and second season but no longer.
I think she is adorable (sookie)
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lartinos
Guest
NEW YORK (AP) -- Why is Netflix raising its prices? In part, because the company miscalculated how many people still want to receive DVDs by mail each month, a more expensive service to provide compared to its streamed Internet videos.
Netflix has been trying to lure subscribers away from its DVDs by offering cheaper plans that include movies and TV episodes delivered over its Internet streaming service. In November, it began offering a streaming-only plan for $8, its cheapest option at the time. Yet Netflix customers aren't flocking to Internet video as quickly as some analysts said the company expected.
Many consumers are unwilling to give up the trademark red envelopes. DVDs feature newer titles and the latest theatrical releases that aren't available through the company's streaming service.
So the company is adjusting its pricing to reflect the cost of its DVD business and to help bring in more money to cover growing expenses for streaming content.
Under the new plan, customers who want to rent DVDs by mail and watch video on the Internet will need to pay at least $16 per month. Netflix had been bundling both options in a single package for as low as $10 per month. But that bundled plan "neither makes great financial sense nor satisfies people who just want DVDs," wrote Jessie Becker, Netflix Inc.'s vice president of marketing, on a company blog Tuesday.
The price hike serves multiple purposes, analysts say. It will likely push more people into the streaming service, which will help Netflix to lower its postal expenses. The cost of shipping a DVD can be as much as 75 cents per disc, while analyst Mike Olson of Piper Jaffrey estimates that it costs just 5 cents to 10 cents to deliver a movie over the Internet.
At the same time, Netflix needs additional revenue to build up its streaming service. In the first three months of this year, Netflix spent $192 million on streaming rights after putting $406 million into the library last year. Licensing costs are expected to jump to $1.3 billion to $1.4 billion next year, said Arash Amel, research director for digital media at IHS Screen Digest.
"Netflix is under enormous pressures from the content owners to write bigger and bigger checks," Amel said. "It had to find the money from somewhere."
Netflix had 23.6 million subscribers in the U.S. and Canada at the end of March, double the amount from the same period two years ago. Its stock has risen 147 percent over the past year, compared to a 21 percent gain for the Standard & Poor's 500 index.
Movie studios and television networks want to capitalize on Netflix's success by getting the company to pay more for content.
In an example of the growing tension, Sony movies were pulled from the Netflix online streaming service last month because of what Netflix described as a "temporary contract issue" between Sony Corp. and its pay TV distributor, Starz. The issue remains unresolved.
Netflix's contract to receive content from Starz ends next year, and analysts say Netflix will likely pay a significant amount to renew it. Netflix CEO Reed Hastings said it "wouldn't be shocking" if Netflix paid more than $200 million per year for Starz' service, far more than the estimated $30 million a year it is paying currently.
Netflix also wants to bring in more money because, as the company has grown, it is making less per subscriber. It got a monthly average of $11.97 per subscriber in the first quarter of this year. At the end of 2006, before Internet streaming was launched, the average amount paid per subscriber was $15.87 per month.
Still, the increased pricing has alienated Netflix's customers, who have taken to Facebook and Twitter to complain about the company's move. Amel, of IHS Screen Digest, said Netflix had tarnished its brand image by surprising customers with the pricing change. But he said consumers should expect Netflix to push them toward Internet streaming going forward.
"Netflix's future is not in the DVDs," he said. "Netflix's future is in the business of premium pay television delivered over the Internet."
Netflix has been trying to lure subscribers away from its DVDs by offering cheaper plans that include movies and TV episodes delivered over its Internet streaming service. In November, it began offering a streaming-only plan for $8, its cheapest option at the time. Yet Netflix customers aren't flocking to Internet video as quickly as some analysts said the company expected.
Many consumers are unwilling to give up the trademark red envelopes. DVDs feature newer titles and the latest theatrical releases that aren't available through the company's streaming service.
So the company is adjusting its pricing to reflect the cost of its DVD business and to help bring in more money to cover growing expenses for streaming content.
Under the new plan, customers who want to rent DVDs by mail and watch video on the Internet will need to pay at least $16 per month. Netflix had been bundling both options in a single package for as low as $10 per month. But that bundled plan "neither makes great financial sense nor satisfies people who just want DVDs," wrote Jessie Becker, Netflix Inc.'s vice president of marketing, on a company blog Tuesday.
The price hike serves multiple purposes, analysts say. It will likely push more people into the streaming service, which will help Netflix to lower its postal expenses. The cost of shipping a DVD can be as much as 75 cents per disc, while analyst Mike Olson of Piper Jaffrey estimates that it costs just 5 cents to 10 cents to deliver a movie over the Internet.
At the same time, Netflix needs additional revenue to build up its streaming service. In the first three months of this year, Netflix spent $192 million on streaming rights after putting $406 million into the library last year. Licensing costs are expected to jump to $1.3 billion to $1.4 billion next year, said Arash Amel, research director for digital media at IHS Screen Digest.
"Netflix is under enormous pressures from the content owners to write bigger and bigger checks," Amel said. "It had to find the money from somewhere."
Netflix had 23.6 million subscribers in the U.S. and Canada at the end of March, double the amount from the same period two years ago. Its stock has risen 147 percent over the past year, compared to a 21 percent gain for the Standard & Poor's 500 index.
Movie studios and television networks want to capitalize on Netflix's success by getting the company to pay more for content.
In an example of the growing tension, Sony movies were pulled from the Netflix online streaming service last month because of what Netflix described as a "temporary contract issue" between Sony Corp. and its pay TV distributor, Starz. The issue remains unresolved.
Netflix's contract to receive content from Starz ends next year, and analysts say Netflix will likely pay a significant amount to renew it. Netflix CEO Reed Hastings said it "wouldn't be shocking" if Netflix paid more than $200 million per year for Starz' service, far more than the estimated $30 million a year it is paying currently.
Netflix also wants to bring in more money because, as the company has grown, it is making less per subscriber. It got a monthly average of $11.97 per subscriber in the first quarter of this year. At the end of 2006, before Internet streaming was launched, the average amount paid per subscriber was $15.87 per month.
Still, the increased pricing has alienated Netflix's customers, who have taken to Facebook and Twitter to complain about the company's move. Amel, of IHS Screen Digest, said Netflix had tarnished its brand image by surprising customers with the pricing change. But he said consumers should expect Netflix to push them toward Internet streaming going forward.
"Netflix's future is not in the DVDs," he said. "Netflix's future is in the business of premium pay television delivered over the Internet."
