Seeking Alpha
  • Tom Shaughnessy
    $P rate hike cant help too much, S&O revenue up to $38M+ made up 19% of total revenue. Not sure how a $6.91B valuation is being supported.
    3/19/14
    Reply (16)
    • Noreika: I like my current service of P while commuting, but will switch to Spotify once they try to get me with that monthly fee/rate hike.
      3/19/14
    • Andrei Volgin: The old rate is grand-fathered for many subscribers. $P would be lucky to get add. 1% of expected revenues from this hike.
      3/19/14
    • Andrei Volgin: And even that assumes that the churn rate will not increase.
      3/19/14
    • Noreika: Yeah, it sounds like another Netflix debacle in the making.
      3/19/14
    • Tom Shaughnessy: Agreed, I am not sure how viable it is, there are just too many competitors. Closing off Piracy 100% would help $P, but thats wishing.
      3/19/14
    • dgulick: only ~12% are paying the reduced annual $3, many of those will probably just convert to monthly, and the rest are grandfathered price.
      3/19/14
    • dgulick: Netflix was nearly a "double" in price, though even with the street overreaction, there were actually very few that cancelled.
      3/19/14
    • dgulick: And if you bought NFLX at the time you'd be up 4x.
      3/19/14
    • Andrei Volgin: Doug, we will consider your advice to buy $P after it falls 75%.
      3/19/14
    • dgulick: You wish! Not going to happen Andrei, but even if you bought NFLX at it's 2011 peak you'd have beat the market by ~40%
      3/19/14
    • Noreika: That would have been a nice play on Netflix. I still think P is slipping up here. I think Spotify will eventually take them out. no position
      3/19/14
    • dgulick: No, they coexist, Spotify is great alternative to CDs and MP3s, Pandora is alternative to FM, just turn it on and work, do dishes, drive...
      3/19/14
    • Pimust: There's better alternatives to P with larger selection of songs like Nokia MixRadio.
      3/20/14
    • Noreika: Thanks Pim, gonna check out the alternatives.
      3/20/14
    • phuettner: Doug, Spotify also has a Pandora-like radio feature. People will use the program that provides the best of both worlds. short P
      3/20/14
    • dgulick: phuettner, I like Spotify and I'll be buying their IPO, but P does a better job at the free/ad market price point, both will do well
      3/20/14
      From other sites