May 21, 2014, 4:02 AM
- Netflix (NFLX) intends to enter France, Germany and four other European countries later this year, adding to online movie and TV subscription services that the company provides in the U.K., Scandinavia and the Netherlands.
- Netflix will be jumping into crowded markets, with Amazon's Lovefilm set to be a major rival in Germany, while France has tough regulation.
- The other European countries that Netflix intends to launch in are Austria, Switzerland, Belgium and Luxembourg.
- Netflix's investment in expanding overseas means its international unit is likely to continue making a loss.
- Netflix has 48M subscribers in over 40 countries, with over 12M of them outside the U.S. (PR)
May 20, 2014, 8:25 AM
- Netflix Latin America (NFLX) says it purchased soccer drama Mata Mata from Red Arrow International.
- Mata Mata tracks three young Brazilian soccer superstars for three years.
- The company is looking to capitalize on the heightened interest in soccer in Latin American countries with the FIFA World Cup around the corner.
- Terms of the content acquisition weren't disclosed.
May 15, 2014, 5:47 PM
- Carl Icahn sold 421K Netflix (NFLX) shares in Q1 (16% of his position), thereby lowering his stake to 3.7%.
- Icahn, who once owned nearly 10% of the streaming giant, disclosed last October he had cut his stake to 4.5% following a 457% return. His son, Brett, and fellow Icahn Enterprises fund manager David Schechter remained unwaveringly bullish.
May 15, 2014, 12:13 PM
- By a 3-2 vote, the FCC has backed chairman Tom Wheeler's neutrality proposal. As previously reported, the proposal doesn't stop ISPs from creating pay-for-priority deals with content providers (fiercely opposed by neutrality supporters), but does seek comment on whether they should be banned.
- The proposal also calls for creating an ombudsman to represent the interests of Web users, and for holding ISPs to service minimums. Moreover, it suggests re-evaluating the looser neutrality rules mobile carriers have been subject to.
- Notably, Wheeler (no doubt sensitive to the public backlash to his past remarks) stated during the FCC's hearing (live blog) he's open to regulating ISPs as common carriers (something they've strongly opposed). The commission seeks comment on what rules it should use to enforce neutrality.
- Initial comments on the proposal can be submitted until July 15, and reply comments until September 10.
- Netflix (NFLX -2.5%), which has pushed for tougher neutrality rules even as it agrees to direct peering deals in the near-term to guarantee service quality, is following the market lower. The FCC vote comes as Sandvine reports Netflix has accounted for 34% of North American peak downstream traffic in 2014, up from 32% six months ago.
May 15, 2014, 4:43 AM
- The Federal Communications Commission is due to vote today on a proposal to formally allow some "commercially reasonable" deals that would enable Internet content companies to pay fees so that their traffic receives priority on the network.
- Facebook (FB), Twitter (TWTR) and Google (GOOG, GOOGL) are among those opposed to "pay-for-priority," while Netflix (NFLX) is strongly in favor of net neutrality as well. The latter has reluctantly forged "direct-peering" agreements that remove bottlenecks between networks and ensure that its contents streams more smoothly.
- Advocates of net neutrality fear that pay-for-priority will lead to "fast lanes" for corporations that can afford it and slower traffic for others, and some even want Internet providers to be reclassified as utilities, as is the case with telephone operations.
- Meanwhile, the FCC is also scheduled to decide on rules for the sale of low-frequency airwaves to wireless carriers, with the regulations expected to limit how much Verizon (VZ) and AT&T (T) can purchase.
- Other relevant tickers: CMCSA, TWC, ALLT, LVLT, CCOI, FTR, WIN, CTL, CHTR, CVC, DISH.
May 12, 2014, 10:34 AM
- Following a public backlash, FCC chairman Tom Wheeler is backtracking a bit on rule changes (floated last month) that would allow U.S. ISPs to charge content providers for access to a priority "fast lane."
- A new draft of Wheeler's plan seeks comment on whether such arrangements, referred to as "paid prioritization," should be banned. It also states the FCC will scrutinize deals with content providers to make sure non-payers aren't at a disadvantage, prevent ISPs from doing deals with varying terms, and (notably) seek comment on whether broadband should be regulated as a public utility.
- Netflix (NFLX +3.2%), whose bandwidth spend accounts for a sizable portion of its expenses, is higher amid a broader Internet stock rally. The streaming giant has struck direct peering deals with Comcast and Verizon this year, but has also made it clear it's not thrilled with having to make them.
- Cogent (CCOI +2.2%), which provides peering services for Netflix and many others, is also higher. Its shares tumbled after the Netflix-Comcast deal was announced.
May 9, 2014, 9:05 AM
- Netflix (NFLX) is raising the price of its basic U.S. streaming service for new subs by $1/month to $8.99/month. However, an e-mail sent out to many existing customers tells them their prices won't change for two years.
- Netflix, only 3 years removed from the Qwikster debacle, stated last month it plans to hike prices for new U.S. and foreign subs by $1-$2/month (depending on the country) in order to finance more content spend. But it added existing subs will maintain their current pricing "for a generous time."
- With Netflix possibly on its way to having 70M+ global streaming subs in two years - it currently has 46.5M - a $1/month hike could yield over $800M/year in extra revenue by the time it reaches Netflix's entire base.
- NFLX -0.3% premarket.
May 1, 2014, 12:26 PM
- Yelp's Q1 report, which was accompanied by a full-year guidance hike and followed by a slew of upgrades, is helping fuel a major rally in high-beta Internet stocks that were pummeled over much of March and April.
- LinkedIn (LNKD +5.5%), which reports after the close and entered trading down 40% from a high of $257.56, is among the notable gainers. As are Twitter (TWTR +3.5%), crushed yesterday in response to its Q1 numbers and guidance, and Pandora (P +6.5%), hit hard last Friday due to the light Q2 guidance provided with a Q1 beat.
- Facebook (FB +3.5%), less damaged by the selloff than some peers, is posting solid gains as the Street gives a thumbs-up to yesterday's mobile ad network launch. "Facebook is essentially bringing the high advertising ROI and targeting precision it has perfected on its own app to the rest of the mobile web," proclaims Goldman, albeit while cautioning near-term sales will be limited.
- Netlifx (NFLX +5.5%), off 30% from its high going into trading in spite of a positive response to last week's Q1 beat and price hike announcement, is bouncing strongly.
- Other gainers: ZU +5.9%. TRLA +5.6% (rallied yesterday following earnings). PCLN +2.8%. EXPE +3.7%. MEET +4.3%. LIVE +9.9%. ANGI +3%.
Apr. 30, 2014, 10:07 AM
- Hulu (DIS, CMCSA, FOXA) made some significant announcements today at the Upfront meetings in New York City.
- The company plans to allow more viewers to watch content on mobile devices for free this summer. A new iPhone app will also launch within months.
- CEO Mike Hopkins told advertising execs that Hulu is in talks with pay-TV providers to get inside of cable boxes. If the firm can pull off the trick and box out Netflix (NFLX) on some cable or satellite services it would be a bit of a coup.
- Another innovation from Hulu: An online/mobile Pizza Hut ad will be run soon which allows consumers to order a pizza from within the ad. The concept could lead to a pay-per-conversion form of advertising which would appeal to consumer product and service companies.
Apr. 29, 2014, 1:47 PM
- Grupo Televisa (TV +1.9%) is in negotiations with Netflix (NFLX +1.9%) to create original content for the streaming service, according to company execs.
- The two companies already work together under a content licensing deal.
- Previous on Netflix's Spanish content plans: Netflix to launch Nosotrso los Nobles, CEO Reed Hastings 'confident' on Latin America growth
Apr. 29, 2014, 7:06 AM| Apr. 29, 2014, 7:06 AM | 12 Comments
Apr. 28, 2014, 10:10 AM
Apr. 23, 2014, 7:29 PM
- Net neutrality supporters won't like this: The NYT and WSJ report the FCC will propose rules tomorrow that let ISPs charge content providers extra for priority access to their networks. The commission will continue prohibiting ISPs from limiting or blocking individual services.
- FCC chairman Tom Wheeler has already hinted the commission could make such a move. Today's reports come after an appeals court threw out the FCC's existing neutrality rules in January; Netflix (NFLX) shares fell on the ruling.
- Netflix, which accounts for a giant chunk of downstream U.S. broadband traffic, recently joined other Internet giants in paying direct peering fees to Comcast; that quickly led to a big improvement in Comcast's Netflix streaming speeds. But Reed Hastings has made it clear he's not thrilled with the deal, and wants tougher neutrality laws imposed.
Apr. 23, 2014, 1:22 PM
- Netflix (NFLX -5%) announces it will launch an original Spanish-language series for the first time in 2015
- The company ordered 13 episodes of a comedy about feuding soccer team heirs called Nosotros los Nobles.
- What to watch: During the firm's earnings call (transcript) earlier this week, CEO Reed Hasting said the company is "very confident" that it will see success in Latin America. Despite the optimism, analysts forecasting international subscriber growth for Netflix have had a tough time getting a handle on where the ceiling is for the Latin American nations.
Apr. 23, 2014, 9:20 AM
Apr. 22, 2014, 9:14 AM
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Netflix Inc operates as an Internet television network providing TV shows & movies which include original series, documentaries & feature films. The Company has three segments namely Domestic streaming, International streaming & Domestic DVD.
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