Netflix Raises $400M

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Netflix has raised $400 million by issuing more stock. The move is sure to piss off investors that are still chaffed over the massive beating the company stock has taken in the last 90 days.

Netflix raised $400 million Monday as the video subscription service tries to recover from a customer backlash that has battered its stock and tarnished its brand. The decision to issue more debt and stock may rattle some investors still worried about Netflix's ability to recover from a crisis triggered by management's July announcement that it was raising U.S. prices by as much as 60 percent.
 
The last company I worked for, that tried to buy it way out of trouble by issuing new stock as a way to "print" more money, was out of business 3 months later.

THANK GOD, I sold my netflix stock when I did. Sure I lost a few hundred on the deal, but at least I got something out of it, unlike the ones whom are still hoping NetFAIL turns around. :rolleyes:
 
Although I'm sure the issue of new stocks was planned for when they decided to raise the prices. It doesn't usually go very well when you use it as a lifeline & dilute your demand.

Only the government can print money with nothing to back it up anymore...
 
While, Netflix became arrogant, big media became greedier than ever by raising the cost of content by more than 10x original price. The system is bound to fail because people got hooked paying something low and won't pay higher than original price for less content. Especially when there are methods to get all content and pay nearly nothing at all.
 
While, Netflix became arrogant, big media became greedier than ever by raising the cost of content by more than 10x original price. The system is bound to fail because people got hooked paying something low and won't pay higher than original price for less content. Especially when there are methods to get all content and pay nearly nothing at all.

Except that the only thing they're charging more for are the licenses to stream the movies. Maybe if Netflix stuck to its original bread and butter, disc rentals, they wouldn't be in such a mess. But they're the ones that wanted to switch their focus because of the lower overhead for streaming to maximize their profits. Now it's come back to bite them in the ass.
 
Add to the fact that Netflix has come out and stated they plan to not make any money for all of 2012 on top of diluting their common stock...yeah, I'd think shareholders would be pissed.
 
Smells like trouble for netflix if they ain't getting money from subscriptions print money!
 
While I don't thin Netflix is in dire trouble, I believe they've mismanaged their transition to digital media and should have never raised their prices as much as they did. We are now dvd only and maybe not for long.
 
Right now Netflix looks like a b-school case study of how not to run a business. Doesn't mean this move was completely wrong though.
 
I think they are going to be around for awhile. These guys are just doing what they have to do to stay afloat. The stock market is a gamble, sometimes you win and sometimes you lose.
 
If they plan to do anything to change their current problems, they need money.
Issuing stock is the better way to do it (the money costs less)
 
Actually they didn't raise $400 by issuing more stock, only $200M. They got the other $200M by selling at a loss some of the stock they bought back earlier.

But really, the service should pay by itself, not by raising money that does not come from the customers. If that means not making a deal with the studios' exorbitant demands, so be it. That message needs to be passed on, maybe the studios will get the point. Other video companies can't outbid Netflix either, not on a long term basis.

Any expansion plan to other countries should be stopped immediately until Netflix fixes the situation in its home country. In the mean time, Netflix should change its streaming pricing, maybe introduce different plans, raise the price of top plans, anything it needs for the best compromise on the customers and the studios demands, but this time, offering different choices to the customers and not fecking up the PR but explaining (with numbers if necessary) the reasons behind the changes, so customers know who (the studios) is ultimately responsible for this price increase and for how much.
 
Except that the only thing they're charging more for are the licenses to stream the movies. Maybe if Netflix stuck to its original bread and butter, disc rentals, they wouldn't be in such a mess. But they're the ones that wanted to switch their focus because of the lower overhead for streaming to maximize their profits. Now it's come back to bite them in the ass.

Disc rentals are on the way out, it's a dying industry. They had to go to online movies.

Their biggest problem was the media providers raising their rates. .
 
Disc rentals are on the way out, it's a dying industry. They had to go to online movies.

Their biggest problem was the media providers raising their rates. .

I wouldn't say that. Most of the "newest" movies I've watched have been through Redbox. Netflix is now an old TV show service.
 
Well, I am just about done with my first month of netflix for free. You know what I think? I am going to keep it and use it for a while. (Streaming only though.) No commercials is great and it seems much better than Hulu to me.
 
You know why Netflix won't work? Because it is fair and affordable. If history has taught me anything, it is that the good guys always lose. Now if they positioned themselves to be less disposable (like cell phones, internet providers, and power companies) and then charged people an arm and a leg, they might have a chance. But the good stuff never lasts. The movie and television studios want you to have a harder time watching movies/tv and they want your pockets to bleed in the process. This is why they are putting the screw to Netflix and jacking up the price for their digital contracts.
 
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