More on Netflix: Profits, pricing, and expansion in the mix


Netflix (NFLX) says it believes a contribution margin rate of over 30% is achievable in 2015.

The company is busy analyzing consumer response to its pricing tiering changes (multiple-stream, SD vs HD, pricing) and hopes to settle on a selection of just three simple options. No word if the highest price point will be boosted.

This year, Netflix plans to start "substantial" expansion in Europe where it sees a large opportunity.

Breaking Bad will be available in all international markets this year, while Better Call Saul will debut in select global markets and the U.S. following its AMC run.

NFLX +16.7% AH.

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Comments (11)
  • alext1379
    , contributor
    Comments (811) | Send Message
     
    I generally ignored NFLX but I sense there will be huge short covering if it hasn't already begun.
    22 Jan 2014, 04:35 PM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
     
    Really? I actually just went short in after-hours at $394.
    Wouldn't it be cool if shorted on top of the short covering? :)

     

    I just checked short interest in not that big, pretty normal actually, and quite small for a multi-billion dollar stock with P/E of 280.
    22 Jan 2014, 04:47 PM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
     
    Let's also not forget that cable companies will be taking Netflix's lunch (however small) after the net-neutrality ruling.
    $125 in 12 months.
    22 Jan 2014, 04:49 PM Reply Like
  • awakeinwa
    , contributor
    Comments (669) | Send Message
     
    The cable cos will get screwed if they actually implemented NN.
    22 Jan 2014, 04:59 PM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
     
    because cable companies always get screwed, right?
    Just like all other legalized monopolies :)
    22 Jan 2014, 05:26 PM Reply Like
  • Gary J
    , contributor
    Comments (10621) | Send Message
     
    "I generally ignored NFLX but I sense there will be huge short covering if it hasn't already begun."

     

    I bet you said this after many quarters recently. You were wrong every time.
    22 Jan 2014, 05:38 PM Reply Like
  • ?...?
    , contributor
    Comments (17) | Send Message
     
    Pay respect to their earnings and guidance
    22 Jan 2014, 07:59 PM Reply Like
  • skibimamex
    , contributor
    Comments (525) | Send Message
     
    it's at $389 in AH right now. Just like last quarter. Probably comes back tomorrow.
    22 Jan 2014, 04:39 PM Reply Like
  • Rubenov
    , contributor
    Comments (467) | Send Message
     
    Only time it did pullback after such a huge earnings report was last time, and it was due to Icahn selling 50% of his position all day through big effing chunks.
    22 Jan 2014, 05:02 PM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
     
    Rubenov,
    Is it that drop of 80% you referring to as the only pull back?
    79 cents is pretty "huge" indeed, they should start paying dividends.
    Also the Oscar win should be good for few Billions..
    22 Jan 2014, 05:38 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (177) | Send Message
     
    I used to subscribe to netflix but cancelled it, in Europe we only have the streaming service and I just felt the movies were all a bit old. Great for watching TV series, but I can't help but think unless they get some decent films their growth will be limited. Of course blockbuster films will cost more and eat into margins.
    22 Jan 2014, 08:23 PM Reply Like
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