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Here are five key quotes from Netflix' conference call:

1. The future of movies by snail mail

[W]e think that DVD by mail will continue to grow for five to 10 years, despite overall DVD rental flatness, as e-commerce continues to grow generally and as video store economics force more store closures.

2. Differentiation from Apple, Amazon and Sony

We don’t plan to enter the pay-per-view segment where Apple, Amazon, Sony, and others focus, or the ad-support segment, where Hulu, YouTube, and others compete. Both of those segments will likely be substantial but our subscription segment will also be large and will provide Netflix plenty of room for growth over the coming year.

3. Streaming video strategy

In order to succeed broadly with streaming, we need it to be easy and inexpensive for consumers to watch Internet video on their television screens. Specifically, our goal is to have our streaming software integrated into Blu-Ray players, game consoles, connected DVDs, and standalone Internet devices. Our substantial streaming content, available to consumers on an unlimited viewing basis makes it attractive for consumer electronics companies to integrate our streaming software, because it increases the attractiveness of their devices and we promote their devices to our large subscriber base. Our results to date with this approach have been excellent, starting with the launch of the Roku box in May. This $99 box allows Netflix subscribers to instantly stream movies and TV episodes to their TV. It’s been a huge hit with strong reviews, strong sales, and great subscriber satisfaction. Roku purchasers are streaming video to their TVs and getting great value for the unlimited streaming portion of their Netflix membership. In the future, Roku boxes will support other Internet video content and migrate from being a Netflix only player to a general Internet video play, which will increase Roku’s sales and therefore the number of TVs we can stream to. We also have a technology partnership with LG Electronics, which we’ll be discussing more in more detail soon, one other similar partner not yet announced, and the Xbox partnership, which we announced last week.

4. Partnership with Microsoft

The Xbox partnership means that with Microsoft’s late fall software update to over 10 million domestic Xbox 360s, Netflix members can stream movies and TV episodes to their TVs as long as they are also Xbox Live Gold members. As with our streaming to the Roku box and to the PC, there is no extra Netflix charge for the unlimited streaming. While our strategy is to achieve ubiquity, we were willing to do an inclusive partnership in the game console segment because of the very large installed base of 10 million households that Xbox has developed. We believe this will be our only exclusive deal in any segment.

5. Competition, and DVD rental kiosks

Blockbuster remained active in DVD by mail over the quarter. Our guidance for the year assumes that they continue to stay active at similar levels for the rest of the year. The rise of DVD rental kiosks in supermarkets, while new competition for us in the short-term, is a bigger competitor for new release focused video stores and should accelerate store closures over the coming years. In addition, the rise of DVD rental kiosks shows that the DVD franchise is still very strong with mainstream consumers. In the long-term, we think it is likely that DVD by mail and DVD rental kiosks will continue to increase their share of the DVD rental market at the expense of stores.

The quotes are taken from the Netflix transcript which was published on Seeking Alpha a few hours after the call ended. If you think I missed something more important than these quotes, feel free to copy and paste your quote from the full transcript and leave as a comment below.

Also of interest -- here are all the transcripts from the Media sector.

Source: 5 Key Quotes from Netflix on the Movie Distribution Business