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Netflix (NFLX), which ended Q4 with less than 24M streaming subscribers, is aiming to eventually...

  • Tuesday, February 14, 2012, 5:29 PM ET
    Netflix (NFLX), which ended Q4 with less than 24M streaming subscribers, is aiming to eventually have 60M-90M, or 2x-3x as many as HBO, according to a presentation from Reed Hastings. His logic: Netflix is cheaper than HBO, doesn't require a cable subscription, offers a wider selection of content, and features a personalized UI. It has also been labeled as "rerun TV" due to its focus on older shows. (earlier)
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This news story has 6 comments:

  •  
    I don't see why people are so down on Netflix. 80-120% of the addressible market is a totally reasonable goal.
    14 Feb 2012, 05:47 PM Reply Like
  •  
    Good observation. Initially, I thought the 60M-90M was global, but I read the presentation, and it looks like the reference was the U.S. This subscriber target must imply multiple subscriptions per household.
    15 Feb 2012, 11:55 AM Reply Like
  •  
    More likely the subscription target is baseless hype.
    15 Feb 2012, 01:14 PM Reply Like
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    I didn't look at the presentation but you can't evaluate a business based on what is perhaps a bad slide in a presentation. CEO's mis-speak, they rely on subordinates who don't have the big picture to prepare presentations and they can't think of every possible way of interpreting how a comment should be interpreted.

    Worth looking at and considering but in a list of important things to consider the slide probably ranks near the bottom. Focusing on unimportant issues seems to be a common problem on Seeking Alpha when it comes to evaluating Netflix.
    16 Feb 2012, 09:04 AM Reply Like
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    Yeah, it's not like one would expect the CEO to know that 90M domestic households is basically impossible.

    A CEO that knows a rough estimate of their addressable market? Now that is simply asking too much.

    Hastings selling his book and at this point is looking increasingly desperate.
    16 Feb 2012, 09:55 AM Reply Like
  •  
    A CEO doesn't need to get all the details right but he (or she) absolutely has to get the big picture right.

    The presentation boldly said Netflix USA should grow to 2-3X the size of HBO (which has 30M household subscribing). It was presented as it if were obvious as opposed to totally made up.
    17 Feb 2012, 02:21 PM Reply Like
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