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Following its post-Q1 selloff, Nicholas Thompson asks if Netflix (NFLX -13.9%) is doomed. Unlike...

Following its post-Q1 selloff, Nicholas Thompson asks if Netflix (NFLX -13.9%) is doomed. Unlike its DVD ops, Netflix's streaming business has low barriers to entry, he argues, and its original content is underwhelming. Felix Salmon disagrees Netflix has low barriers to entry, but thinks its content deals are a major problem. "Any time that Netflix builds up a profit margin, the studios will simply raise their prices until that margin disappears." (more)
Comments (5)
  • Those are very old arguments. I am starting to get bullish on NFLX and started a position - they stock didn't deserve that sell-off on an earnings beat!
    24 Apr 2012, 08:52 PM Reply Like
  • Why not? They are losing subscribers but the model is doomed, they have hit a wall as far as content is concerned. I don't even know why I have it now because there aren't any good movies or even new releases on the thing. Why do I have to wait 2 years for them to get a movie released?
    24 Apr 2012, 10:51 PM Reply Like
  • They are not losing subscribers. I have it and like it. My son to. Costs 8 bucks. That is one commission with my broker.
    24 Apr 2012, 10:53 PM Reply Like
  • I know, I think I expect more from it, but really am constantly disappointed with its selection, I have one foot on the exit door on it, probably gonna nix it since i signed up for HBO, and we get that on Xbox console now too.
    24 Apr 2012, 10:57 PM Reply Like
  • Everyone needs to be careful with jumping to other Internet streaming services. Most will require you already pay a subscription on top of the new web service. Major companies are not going to do what Netflix is attempting to do. That is why they are starting to compete now.


    Netflix is attempting to offer a great product at a discount price. Larger companies will fight this so don't think that their products will give you what you want.


    Basically if you are willing you can still watch HD shows for free for any appetite just by using YouTube and Crackle.
    24 Apr 2012, 11:16 PM Reply Like
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