Netflix's Battered Stock: What Next?

rflcptr said:
No, they don't. Sorry. :)

Happiness is not equal to entertainment. They are not interchangeable.

Is this a book you've also stolen, by chance?

Begging the question.
Bandwagon.
Try again.
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Ignoring the quote fail, these are my words. :rolleyes::p
 
When copyright law first arrived in the U.S., 5-7 years was considered an adequate amount of time for someone to monopolize an idea.

In this era of digital distribution and rapid communication, shouldn't it have gone down rather than up? It's now 95 years...crazy.
 
I'm bumping this due to the 1-year anniversary of Netflix's fiasco in raising prices by 60% and greatly underestimating on the number of customers they pissed off. This is a very in-depth article about Netflix and how CEO Hastings took a Wall Street darling and almost ran it into the ground.
 
Steve said:
Netflix's stock is down $100 (from $305 to $205) since the company announced the new price hikes last month. Although the company is trying to save face by saying it "anticipate the backlash," I don't think anyone knew the stock would be hit this hard. :eek:
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If a CEO anticipated a 30% loss in company value if he went a particular route, and went that route anyway... I'd be canning a CEO.
 
Ahh, old article, I was going to say: A month ago???

Regardless though, I'm not too bummed. Streaming selection sucks. I'm in the minority and happily enjoying my BluRay plan for $10 a month. Cheaper than RedBox, I don't have to drive to get one, a bigger selection, and no late fees.
 
what is odd, they just dropped a bunch of online TV show content, some we were in the middle of watching. they removed entire seasons and then left some out completely. so now we can watch seasons 3,4, and 6 only and not anything else.

we cancelled, our subscription ends like august sometime.

Price wise, it is a great deal but the content sucks so horribly bad...
 
And as far as I know, the company makes more money than it ever has.

So I guess other than the stock price, the company is doing fine even if the customers on this forum hate them.
 
Pyroja said:
Streaming is still great. Never had the DVD plan anyway because, well, the streaming is great. Besides... Holy crap, access to a gazillion DVDs and a solid streaming service for less than the cost of buying one or two DVDs a month? My god, what a RIPOFF, amirite?

:rolleyes:
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Saturn_V said:
I'm sticking with Netflix too. Streaming + 1 DVD plan. An additional $6 a month isn't killing me. I still feel it's an excellent service.

But I'm leaning on pulling the plug on Digital Cable by the end of the year.
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CruisD64 said:
I dunno. I think Netflix offers a great service and I don't care that prices have jumped. I never order CD's for delivery and use the streaming service every other day. Considering I used to pay $3 per video rental without the convenience of streaming, it's still worth it.
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Yeah, right there with you guys. Family loves it.
 
Netflix was ... "foolish" to have done what they did. But I can't blame them too harshly (without knowing intent) because I don't doubt that that the media companies are asking ridiculous payment.
 
I don't think they were foolish to raise prices (aka ending the free ride on streaming) And I don't have any sympathy for anyone who's still butthurt over that. They were foolish for trying to split the brand and launch Qwikster.

But honestly, they only lost a Million subscribers over this whole debacle. 26 Million are still subscribed, so I count this as more of an public image catastophe than an actual business catastrophe.
 
Saturn_V said:
But honestly, they only lost a Million subscribers over this whole debacle. 26 Million are still subscribed, so I count this as more of an public image catastophe than an actual business catastrophe.
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I dunno, based on that stock history it kinda looks like they fucked up pretty bad in a business sense.

I agree that even with the new prices it is still a good service, but clearly it was a bad move stock-wise.
 
The problem all boils down to the content providers. They aren't going to let netflix stream all their new movies and risk losing the DVD/BR sales. So netflix is stuck paying a ton of money for shitty/old content. So they had to raise the rates in order to bring in more money to pay for more content. As much as I hated the price increase, it is still a good value for the service provided. I would have paid even more a month if the streaming content was much better. Why pay 60$+ a month for cable, when you can pay the same to netflix and have instant access to what you want when you want. Plus no commercials......

Now I did drop netflix when they raised their rates, but that was just the final straw. I had already gone through most of the good streaming stuff, and was just watching crappy movies to justify having the service. I always planned to come back if they were actually able to increase the content after the rate change, but that hasn't happened. In fact I think they lost some big providers in that time as well, so netflix is between a rock and hard place right now.
 
Yeah, it really seems like NetFlix saw the hand writing on the wall long ago but the future they wanted for there company just isn't materializing. The content owners are determined to put netflix under because so many people are opting out of paying for cable or satellite TV because NetFlix (and a few other) can provide what you want, when you want it for very little cost.

I opted out of the streaming because their content was poor but kept the DVD by mail service.
It seems DVD use is as high as ever. Much of the time I get a DVD it is scratched beyond good playback or it is broken. This shows how many times it has gone out to people.
The flip side, is when I get a Blu-Ray, it is absolutely pristine like it has never been handled before. Still very FEW people have Blu-Ray players.
The conclusion I came to is the increase in resolution is meaningless to most people.
Like my wife; she can't tell the difference between a HD movie paying back and a SD. And it isn't her eye sight. The increased resolution is meaningless to her. (and a lot of people)
 
Love 'em! Just added 3 DVD's at a time to my subscription.

Hulu Plus + Netflix Streaming + 3 DVD's < Cable bill

Plus I can stream to my phone.

Love 'em!
 
Renewed my instant plan a while ago and began watching Breaking Bad. Pretty good show and I'm glad I renewed. I hope they add season 4 soon.
 
If netflix really wants to stand out they need to get their own programming some.

They already started this with their show "Lillyhammer" (which was a decent show, if you like soprano's you'll probably like it, though it's more of a comedy).

They are working on another series now too.


The main problem with netflix and their digital service is the lack of movies and turn arounds.

They hardly ever seem to get anything "new" in, and by new I don't mean only things that were just reelease, but new things that weren't on netflix before.

I recently started to watch HBO go, and while they don't have nearly as big a selection they have a quick turn around of new movies and things they put on it along with all of their own programming that can be found on it.
 
Biznatch said:
As much as I hated the price increase, it is still a good value for the service provided. I would have paid even more a month if the streaming content was much better. Why pay 60$+ a month for cable, when you can pay the same to netflix and have instant access to what you want when you want. Plus no commercials......
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That's a dream of mine. I hate paying $60 for TV (that I hardly EVER watch in the summer). I hate paying to watch commercials.

My biggest issue is sports. ESPN 360 doesn't cover everything that ESPN covers. It won't carry CBS etc events. And the quality isn't so great on a 70" display. For this reason alone do I still have cable.

Otherwise, Hulu Plus would fit the TV-series bill.
Netflix already fits my movies bill.


Dr. Righteous said:
The conclusion I came to is the increase in resolution is meaningless to most people.
Like my wife; she can't tel l the difference between a HD movie paying back and a SD. And it isn't her eye sight. The increased resolution is meaningless to her. (and a lot of people)
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That's because most people can't tell.
Most people get a 55" TV with BluRay, and then sit 15 or 20 feet away from it. The human eye cannot discern the difference in 720p and 1080p from that far away.
On my 70" TV (which I have 9' away), you certainly CAN tell a difference.
 
J W said:
Renewed my instant plan a while ago and began watching Breaking Bad. Pretty good show and I'm glad I renewed. I hope they add season 4 soon.
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we got hooked into this show a while back and just watched it all the way to getting caught up, then we got the dvds in the mail for later seasons.

we also just loved tutors on instant too.
 
Epicness said:
If a CEO anticipated a 30% loss in company value if he went a particular route, and went that route anyway... I'd be canning a CEO.
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BobSutan said:
Wow, I just looked up their stock price. If I were a Netflix stockholder I'd be calling for pitchforks and torches. Look at the 2 year history:

http://finance.yahoo.com/q/bc?s=NFLX&t=2y&l=on&z=l&q=l&c=
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beowulf7 said:
Better yet, just look at the last 12 months of Netflix's stock performance, hence the bump I gave this old thread via that link I mentioned in my previous post. :D
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Why Reed Hastings is CEO and armchair stock analysts are lulzy

https://www.google.com/finance?chdn...e&q=NASDAQ:NFLX&ntsp=0&ei=zGlkUvjPAqOIlgP07AE

1331% gain over the last 5 years.
 
I love Netflix but I don't have cable and don't watch much TV. I pay $14 a month for it, $8/month for Netflix, $5/month for DNS changer to access us content since Canadian one is lacking and I'm happy with it. I use to pay $70/month for satalite and there was only like 6 channels that we used. What shows arnt on Netflix I built a torrent and media server box to download and stream to my ps3. I can start a download from work on my phone and its ready to watch when I'm home. Sick thing is it only took 2 months to recoup costs on upgrading an old computer after you factor in how much a month I save on not having satalite
 
Wasn't Netflix in big trouble about a year ago over rate hikes?

And they're still here.

Sometimes I think anti-Netflix sentiment is just being stirred up by cable and satellite providers who can't accept that they're dying off.
 
Stiletto said:
Wasn't Netflix in big trouble about a year ago over rate hikes?
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It was July 2011, two years ago when NFLX announced the rate hikes. They had a small exodus of subscribers that Fall. And 2012 wasn't a good year for them either.

The current stock price is probably more due to original content (House of Cards, Orange in the New Black) and new content (Arrested Development) than subscriber retention. It doesn't hurt- they picked up 3M subscribers the instant House of Cards was released.
 
Everyone I know wanted to buy when the stock went on sale from their snafu, but I didn't have the cash to buy. I stand by my statement though that existing stock holders were pissed at him for doing that. On the other hand, it was a great time to buy if you had the money since we all knew they'd recover eventually. If Google ever takes a nosedive I'm jumping on it.
 
Given the amazing run-up NF's stock has had, I wonder if it's too overheated and ripe for shorting.
 
Saturn_V said:
It was July 2011, two years ago when NFLX announced the rate hikes. They had a small exodus of subscribers that Fall. And 2012 wasn't a good year for them either.

The current stock price is probably more due to original content (House of Cards, Orange in the New Black) and new content (Arrested Development) than subscriber retention. It doesn't hurt- they picked up 3M subscribers the instant House of Cards was released.
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This is my point of view. They have added value by making their own content which is why we have the recent rise. I expected Microsoft, Amazon, and Apple to focus on the market and to date only Amazon has with their typical cost effective methodology.

Still worried about them longterm but if they keep making solid shows they will do well.
 
beowulf7 said:
I'm bumping this due to the 1-year anniversary of Netflix's fiasco in raising prices by 60% and greatly underestimating on the number of customers they pissed off. This is a very in-depth article about Netflix and how CEO Hastings took a Wall Street darling and almost ran it into the ground.
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Bump for 50% pay hike for the CEO
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-415859/

And NFLX's chart since 7/15/2011:
https://www.google.com/finance?chdn...e&q=NASDAQ:NFLX&ntsp=0&ei=m8nCUqjmH-v_sQeyrAE
 
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