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  • 5 Reasons To Invest In Outerwall Alongside Jana Partners [View article]
    Transactional VOD was down 5.84% in Q2 while subscription VOD was up 25.58% (to 982.07 million for the quarter for subscription VOD - Kiosks were down to 427.75 million and transactional VOD slightly above Kiosks at 448.74 million).

    Meanwhile, Electronic Sell Through (EST) was up 34.12% for the quarter and up a whopping 90% in H1 2014.
    Aug 15 11:04 AM | Likes Like |Link to Comment
  • 5 Reasons To Invest In Outerwall Alongside Jana Partners [View article]
    Quick update. In H1 2014, kiosk revenue dropped 3.14%, including 6.61% in Q2.

    Kiosks appear to be on the same path as every other physical media rental market. That is despite the box office strength of releases in H1 being up 3.29% compared to H1 2013.
    Aug 14 11:28 AM | Likes Like |Link to Comment
  • Are You Worth Less Than 50 Cents To Netflix? [View article]
    I should also point out that digital sales of NEW releases are up an astounding 90% in H1 2014.

    That only reinforces the fact that consumers understand the difference about what is available on streaming subscription services, and choose to spend money to digitally stream new content on a transactional basis.
    Aug 6 12:02 AM | 1 Like Like |Link to Comment
  • Are You Worth Less Than 50 Cents To Netflix? [View article]
    It is a completely baseless assumption to state that people are purchasing Netflix streaming based on a misconception. People are not morons and certainly are aware that movies that are being advertised as being available for digital sale and for DVD/Blu-ray are not available on Netflix streaming.

    And as the Netflix streaming subscribers continue to increase and the Netflix disc by mail subscribers continue to decrease, people are obviously not automatically "leaving the Netflix ecosystem" despite it being glaringly obvious that titles available for purchase (or VOD) are not on Netflix streaming.

    Sakelaris - I think perhaps your own desires as a consumer are clouding your ability to look at this objectively. I understand why (as a consumer), you would personally prefer the disc system, including first-sale.

    But don't let that blind you to the fact that consumers are making relatively informed choices about their content consumption, including the glaringly obvious one that Netflix streaming does not offer any major studio content at the same time it is available for sale, or even available to be rented via disc (either at Netflix or Redbox). Again, that difference between discs and subscription is glaringly obvious... and disc rentals are STILL in decline (including both subscription DVD by mail and kiosk rentals).
    Aug 5 11:59 PM | 1 Like Like |Link to Comment
  • Are You Worth Less Than 50 Cents To Netflix? [View article]
    As much as I am a proponent of first-sale and the benefits to the consumer, it would be foolish to ignore that consumers are still speaking with their wallets and spending less and less on physical media across all categories.

    Disc sales are down 8.2% in H1 2014. Disc rentals (B&M) are down 37% in H1 2014. Even kiosks are down 3.1% in H1 2014.

    Meanwhile subscription video (not including Amazon) is up 26% in H1 2014. Video on Demand -VOD- and Electronic Sell Through -EST- are up 16.7% in H1 2014.

    I expect Netflix discs by mail and kiosks to be the last men standing in the physical media rental field, but I don't expect them to do anything but slowly decay.
    Aug 5 12:35 PM | 1 Like Like |Link to Comment
  • Are You Worth Less Than 50 Cents To Netflix? [View article]
    I agree with biobat. DVD is still profitable on a per sub basis, while revenue will continue to decline.

    And the nature of the business means that Netflix can ship out old discs to satisfy some of its customers needs. For catalog titles, the content cost is likely already off the books. The DVD business at Netflix can die a natural death as people move on from physical media, and be profitable all the way down the drain.
    Aug 1 12:03 PM | 2 Likes Like |Link to Comment
  • Netflix 2Q14 Preview: Price Hike Deja Vu? [View article]
    In 2011, they were dealing with a very messy and poorly managed de-coupling of DVD by mail and streaming.

    This is a simple price increase for new subs.

    Even when they increase the price for existing subs, it is much easier to demonstrate that the value of Netflix streaming has increased substantially... particularly if they wait until Disney/Marvel/Lucas content hits the service before enacting the price increase to existing subs.
    Jul 20 12:37 PM | Likes Like |Link to Comment
  • How Rupert Murdoch Could Acquire Time Warner [View article]
    Good call!
    Jul 16 09:45 AM | Likes Like |Link to Comment
  • Outerwall: Stock To Double On EcoATM Growth And Buybacks [View article]
    It seems like someone has pulled the rug out from OUTR since that peak.

    They are a great short term cash generator, but they are entering negative growth phase as the last bastion of physical media (kiosks) starts to decline with each and every other form of movies on physical media.
    Jul 15 12:14 AM | 1 Like Like |Link to Comment
  • Surface Is Vital To Microsoft [View article]
    I am not sure if it is "vital" to MSFT, but the Surface Pro is certainly an excellent product.

    I am looking forward to the announcements tomorrow to see what is new.
    May 19 09:45 PM | 4 Likes Like |Link to Comment
  • World Wrestling Entertainment Inc.: The WWE Bears Are Missing The Forest For The Trees [View article]
    I think he has his detailed model.
    May 17 04:08 PM | Likes Like |Link to Comment
  • The iPhone Now Accounts For 75% Of Apple's Profit - And It's Actually Good News [View article]
    Nice article. Appreciate the work.
    May 2 12:47 PM | Likes Like |Link to Comment
  • Kill The Microsoft Surface Tablet [View article]
    I seriously question whether you have used a Surface Pro 2. To say it is too slow is ludicrous.

    It is a damn fine computer with a great form factor. I use a docking station with it in the office, and can slide it out and use it anywhere for any computing purpose (PC or tablet).
    Apr 9 06:08 PM | 3 Likes Like |Link to Comment
  • Kill The Microsoft Surface Tablet [View article]
    Exactly. The Surface Pro 2 is a fabulous computer.
    Apr 9 03:31 PM | 5 Likes Like |Link to Comment
  • Amazon unveils Fire TV set-top [View news story]
    With enough money anything can be replicated.

    In business, saying someone can replicate a business model generally implies the ability to grow and compete.

    What you meant to say is that replicating Netflix would be very difficult and a massive risk for any business actually attempting to duplicate their subscriber base and content mix.
    Apr 2 08:31 PM | 3 Likes Like |Link to Comment