Netflix is riding two headstrong horses hoping that one will save them. They are working on developing technology for on-line down loads. In this regard Tech and Development spending is up 40%. Sounds good but the overall dollar amount is still small compared to other competing and disrupting budgets.
The other horse is clients. They are adding somewhat but the costs of marketing are up 36% when comparing comparable quarters. The cost of DVD libraries is up a meagre 9% which means they do not feel the need to invest in product as the client is not showing up fast enough.
To top it off, G&A spending is up 47%. That's not good and indicates problems keep biting this company in the worst way.
Netflix, your greatest asset is your clients. Make a deal with someone who has the technology soon. Otherwise both horses will burn themselves out and you will be run over as another also ran.
NFLX 1-yr chart:
