The Bankruptcy of NFLX (Netflix)

We use Netflix streaming on the Wii and I have to say that they do have quite an interesting selection of independent, foreign and non-mainstream movies. Sure, many of the B movies are terrible but there is a lot of quality. Been watching some Korean films and they are pretty good when it comes to crime thrillers.

The overall selection, as a whole, is obviously lacking many popular films but there is definitely a niche there. At 8 bucks a month, it's worth it, not for me personally, but for the family.

Netflix has enough of a brand name to stay a functional business. I'm guessing they will just re-position themselves as a On-Demand service rather than mailing DVDs & Games.
 
Quote from chaosclarity:

09-26-11 06:14 AM
I know many people here do not want to honestly admit to what is going on, but this is a discussion board for conversation about issues. In this forum, we do not simply ignore the facts. The facts is there is funny accounting going on at NFLX...the CFO resigned several months ago. We can only conclude that NFLX is at or near the point of bankruptcy due to very questionable accounting. My expectation is for a seekingalpha article to come out any day now to detail the goings-on at the corporation. I do not believe NFLX will be solvent in the next several months.
More...

is this message board moron EVER right! What a joker!
 
Quote from SREC:

We use Netflix streaming on the Wii and I have to say that they do have quite an interesting selection
More...

Costumers (including me) love Netflix. It is the business model that doesn't seem to work. Paying 30 million just for the right of ONE movie??? That sounds crazy to me. Competition increasing, copyrights prices are going up, profits are non-existing.

The recent runup in price seems to be fueled by takeover rumours. Now if that actually happens, that could keep the price up. But that doesn't address the problems with the business model....
 
I'd like to echo others who have noted that one of Netflix's competitive advantages is that they can be found on your video game consoles, Ipad, TIVO, laptop, desktop, android phone, dvd player etc. That flexibility is huge for them, and sets them apart from Amazon, Hulu, Blockbuster etc.

I have certainly read doom and gloom reports about Netflix's content costs skyrocketing, but it strikes me as implausible that the prices will be bid so high that Netflix cannot make a profit. Who would make a profit then? And who would support those high prices? If Netflix cannot afford the online content, then no one can.

I think Netflix has a future. I wish I knew how rosy it would be, but I fully expect Netflix to exist in some form a few years from now.
 
just a matter of time.

google / amazon et al. will dupe off the model and the net will be toast.

you should be short at 254.00 as it puked thru the 200.

still long and wrong........
you can keep a few nickels if you blow 'em out on the gap fill.
exit door at the 104.00

before the next earnings report comes down the pipe.

cheers,

s
 

Attachments

Quote from chaosclarity:

I know many people here do not want to honestly admit to what is going on, but this is a discussion board for conversation about issues. In this forum, we do not simply ignore the facts. The facts is there is funny accounting going on at NFLX...the CFO resigned several months ago. We can only conclude that NFLX is at or near the point of bankruptcy due to very questionable accounting. My expectation is for a seekingalpha article to come out any day now to detail the goings-on at the corporation. I do not believe NFLX will be solvent in the next several months.
More...

Just thought I'd add that until earnings are negative bankruptcy is unlikely. I see EPS at $4.40.

The CFO resigned because his options grant wouldn't ever finish in the money, and that's pretty typical when shorts pile on. I wouldn't say that's an indication of insolvency, because there isn't any.
 
Quote from roreilly:

If Netflix cannot afford the online content, then no one can.
More...

Not quite so. If movie companies make a similar service, they already own the catalog, so no extra cost is involved. Also 3-4 movie companies can get in an agreement and say, I let you use my movie if I can use yours, thus again, making the content cost minimal....
 
Quote from Pekelo:

Not quite so. If movie companies make a similar service, they already own the catalog, so no extra cost is involved. Also 3-4 movie companies can get in an agreement and say, I let you use my movie if I can use yours, thus again, making the content cost minimal....
More...

I agree that the movie studios and other TV and movies rights holders could compete directly with Netflix Amazon, Blockbuster, etc., but of course, they would be forgoing the revenue from Netflix and its competitors. Are you suggesting that the movie studios and TV producers will actually start streaming services in competition with its licensees?

In many businesses with distributor models, the producers actually protect the distributors' business interests. I think that is prevalent in the movie business as well.
 
Quote from roreilly:

Are you suggesting that the movie studios and TV producers will actually start streaming services in competition with its licensees?
More...

They could, not that they will. They can just run the numbers, and as long as they are statisfied with the fees coming in from their catalog, they don't have a need to make a competitor. Also, it is a smart policy not to kill off their costumer, so as long as Netflix pays huge amounts for using their catalog, they are happy. They might not want to raise the fees too much so Netflix would have to fold.
Netflix is paying as much as 30 million just for 1 movie. How long can they keep that up when they only charge $8 a month, time will tell...
 
You must log in or register to reply here.
Back
Top