Quote from optioncoach:
If you think there is no other service like Netflix involving renting or watching digital movies then you are technologically way behind the times. The reason NFLX [edited for correctness] probably lowered guidance is because so many other outlets exist to get digital movies. Comcast and DirectTV offer HD movies on demand, kiosks in most Harris Teeters for $1 a day movies, iPod, Blockbuster and a few other places all doing something similar.
Sounds like you are talking your position after taking a hit.
You misunderstood me, there are tons of digital download / ondemand services i agree, but none come close to netflix. I did quite a bit of research in the past actually.
1) All the instant movie download/rental such as amazon unbox, cable ondemand, apple, etc..all cost avg $3.99 for ONE new movie. It is not in the same league / target audience as netflix.
2) All the monthly flat fee rental similar to netflix does not come close. The only one with almost as a large inventory / turn around time as netflix is blockbuster, but they are still way behind.
3) Netflix is now also offering FREE streamed movies to its monthly subscribers, noone can match it. The # of instant watchable movies are also growingly weekly.
So the company is well positioned for the eventual transition to pure digital movie viewing in 5-7 years (with the bluray and 1080P tvs now taking center stage, it will take at least that long to phase out physical discs)
It's the same as ipod vs other mp3 players, probably even more so.
I take back my entry target though, today is a bloodbath so we may very well break the $30 support. Will wait and see, but definitly a good long term investment.
EDIT: vongo and all those only have old movies...they dont have any new dvd release until a few(?) months later, it's nothing new.
ps i dont have a position in nflx
