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  • NFLX and the Trouble Ahead!!! 0 comments
    Dec 1, 2010 11:51 AM | about stocks: NFLX, LVLT
    I have used nflx and loved the product over three years.   When i first came upon it i marveled and said that this stock will be the next stock to have a major run... (that said i held the stock for about 2 weeks ,  made my 5% from $33- $35,   and watched as the stock over the next 2 years mounted it's meteoric run.      If anyone has not read the latest release from comcast posted yesterday...They should take notice.    Comcast battle with Level three [LVLT] has less to due with level three and more to do with NFLX..  

    Currently the entire business model of the cable providers is under attack by NFLX.   Netflix, with its wonderful pricing model,  has basically offered us a glimpse into the future of what television, movies and show consumption will look like.    Now,  the problem is this.   They are in direct competition with the cable providers.   The key here is when you download your streaming content from nflx, you must do it through your current provider of internet service... Here in lies the issue that will come to the surface (i believe)  very soon.  

    If the service providers stop unlimited consumption of data,...And make the end user pay for the incredible amounts of traffic coming through there (the providers) pipelne to your living room.   What we will get is this:   Your wonderful NFLX subscription will cost you $10 a month for unlimited service,   but quite possibly $100's in data consumption fees.    This will cause subscribers to stop and rethink, almost immediately there use of this product.         For the record i just shorted the stock here,..  I have loved the product and the company for years,   but the risk in owning the stock here is substantial in this traders opinion.     This is the only option the cable providers have to fight back.   Yesterday with the LVLT news we just saw the first shot fired...    Its time to take notice


    Good luck




    Disclosure: short nflx
    Stocks: NFLX, LVLT
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