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  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    "profitability of a new streaming subscriber, the contribution margin is almost twice what it is for a DVD subscriber. So that's the way we think about it. And we're -- we’d like to have someone use both services because obviously, that's both more revenue and more profit. But if they were only going to use one, we'd much prefer them use the streaming service.”

    -- David Wells

    "DVD will do whatever it's going to do. We're not -- we're going to try to not hurt it, but we're not putting a lot of time and energy into doing anything particular around it ..."

    “We expect DVD Subscribers to decline every quarter … forever.”

    -- Reed Hastings

    Qwikster.

    There is something to this idea that they are sending DVD out to pasture. Electronic delivery is the way forward, I absolutely agree. The barriers to streaming are low other than cost but many players have much larger pockets than Netflix. Competition will rise...

    My point in this article isn't really about those challenges tho, it's that they have found a place in the media eco-system as a company that others will compete with and so prices will rise for everyone in the brave new world of streaming. That it will pay anything to stay in the game AND that will hurt Netflix longs because Netflix is adamant that it will continue down this path to the detriment of profit for the sake of ___ I gather they want to be the Amazon of streaming media...but so does Amazon...and Netflix isn't growing fast enough
    Aug 22 04:43 PM | Likes Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    That's pretty novel! Maybe that's what the Redbox model will be ;) put encoders in it's thousands of kiosks :P
    Aug 22 04:43 PM | Likes Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    One reason may be that PPV is also low margin and they can't kill DVD in one fell swoop as it has allowed them to tread water. If PPV was rolled out DVD would be dead in a day.
    Aug 22 03:51 PM | Likes Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    That's the thing, are they growing their top line? Look at that chart up there, it's brutal. Unless something changes drastically (and soon) revenue wont be growing. This is why they are announcing the Nordic expansion so soon. DVD is a cash cow providing top and bottom line but it's shrinking at a rapid clip. What will the story be when it has decreased by another 10% or so next Q?

    Also, on eventually changing to an ad model. I would love to see them make a move towards sustainability, a pre-roll ad isn't the worst thing on the planet if it gave them a means to exist!
    Aug 22 03:34 PM | 1 Like Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    You are right!!! Netflix is really great to use on some platforms! That isn't what I'm talking about here tho.

    I'm talking about content deals that would stretch BSkyB. There ought to be a red flag in there somewhere.
    Aug 22 03:03 PM | 1 Like Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    I just don't get it...why kill the profitable portion of the business? I know streaming is the future too! Doesn't mean I stop doing what pays the bills.
    Aug 22 02:59 PM | Likes Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    I'm with you on GMCR (on and off), but since you said "we got a huge correction and nothing has changed" I should point out that much has changed since $200-100, look at that rev growth chart above...

    I don't see the brand as weak either, i see growth stalling and costs skyrocketing.

    I wasn't short at $200, i am a satisfied latecomer :)
    Aug 22 02:51 PM | 1 Like Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    *I would not be :) ^^ Also, thanks for the comment!
    Aug 22 01:52 PM | Likes Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    To the rest of your comment, I agree that streaming media is the future. But who needs Netflix for that? I also don't think dilution would be right out of hand necessarily, but I think the effects will be fairly brutal on longs as the stock story changes from growth to low potential.
    Aug 22 01:31 PM | Likes Like |Link to Comment
  • Expect Dilution To Accompany Delusion As Netflix Finds Its Calling [View article]
    I'm would not be hedging my bet because I feel the thesis may be wrong, I would hedge it for technical reasons. If it breaks 67, it can easily run up for a quick and dirty gap fill.
    Aug 22 01:25 PM | Likes Like |Link to Comment
  • Don't look for any decisions to come out of Friday's meeting with Greek PM Samaras, says Germany's Angela Merkel, who adds she will wait for a Troika report in October. Samaras, meanwhile, launches a PR offensive with a German newspaper interview, asking for "breathing space," and saying he "personally guarantees" repayment of rescue funds. Personally? [View news story]
    That cat must be loaded!
    Aug 22 11:54 AM | 2 Likes Like |Link to Comment
  • Apple (AAPL -0.6%) has received a rare downgrade to Hold from Oracle Research. The company's recent run-up presumably has something to do with it. Apple's last downgrade came in April, courtesy of BTIG's Walter Piecyk. (earlier[View news story]
    Excellent first comment Joseph.
    Aug 21 03:42 PM | 1 Like Like |Link to Comment
  • "It’s a bigger company than just engineers, and we pay the bills," grumbles a Yahoo (YHOO) ad sales employee, upset over Marissa Mayer's overwhelming focus on products and technical talent since becoming CEO. Kara Swisher reports "many in the sales, finance and media side of Yahoo" have similar concerns about Mayer, who hails from engineer-dominated Google. Plenty of sales execs, some loyal to the departed Ross Levinsohn, have recently left[View news story]
    Rock on. Wake up and smell the innovation.
    Aug 21 02:49 PM | 3 Likes Like |Link to Comment
  • Apple (AAPL -0.6%) has received a rare downgrade to Hold from Oracle Research. The company's recent run-up presumably has something to do with it. Apple's last downgrade came in April, courtesy of BTIG's Walter Piecyk. (earlier[View news story]
    How much cheaper have LTE & Retina display components become in the last year?? Margins children, margins...
    Aug 21 12:11 PM | 1 Like Like |Link to Comment
  • Should You Invest In Netflix? [View article]
    Crooked.
    Aug 21 08:56 AM | Likes Like |Link to Comment
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