Netflix stock $300 ---> $161 since July price hike! UPDATE: $106!

[bfdd]

Their offerings are streaming versions of programs you can see on non-premium cable. The fact that they raised the price of DVD rental, raised prices with little warning, lost Starz (that provides most of their good movies), the recent fiasco about the number of receivers that can be used at once, no indication of advanced services, and no original content has turned off customers. What did they think would happen to their stock?

Yeah... except all of those things are because of content providers/makers wanting MORE MONEY. You do know how much Netflix offered Starz for a year right? Like 1/10th of their yearly profit. By ditching Netflix you are supporting all the shittiness that has been going on. Stop playing into the hands of the big media companies. Also, Netflix @ 8 bucks a month is still cheaper than basic cable.

 

[dwell]

Stock down 25% since yesterday. Ouch.

Canceled a long time ago. The streaming content sucked then, it will suck more when Starz goes away. The game is content and Netflix don't have it.

 

[pontifex]

I don't understand why people went to just streaming? their streaming content is pretty low compared to dvd/blu-ray. I dropped streaming and went from 3 discs to 2.

 

[Schadenfroh]

The loss of content providers like Starz is far more concerning than the drop in the customer base.

 

[zinfamous]

how else are they going to get content on the web, through other companies like apple, amazon, google? it's hard to ignore the big customer base netflix already has, albeit quickly declining customer base.

thing is, they will either distribute themselves, or charge super high premiums to Netflix and other distributors.

as it stands, the networks and studios seriously undervalued the value of their licensing when Netflix snatched it up for their current contracts.

Either they will abandon Netflix when those contracts are up, or Netflix will have to pay, thus the customer will ahve ot pay.

Either way, it's not going to be as good as it is now.

 

[zinfamous]

Stock down 25% since yesterday. Ouch.

Canceled a long time ago. The streaming content sucked then, it will suck more when Starz goes away. The game is content and Netflix don't have it.

I don't care about Starz. all of their Netflix content sucked, anyway.

 

[bfdd]

thing is, they will either distribute themselves, or charge super high premiums to Netflix and other distributors.

as it stands, the networks and studios seriously undervalued the value of their licensing when Netflix snatched it up for their current contracts.

Either they will abandon Netflix when those contracts are up, or Netflix will have to pay, thus the customer will ahve ot pay.

Either way, it's not going to be as good as it is now.

I'm not paying more than 10 bucks a month for access to older media. The content creators/providers are stupid because they didn't design their own delivery system now they want to try and rape us & Netflix for it. Bullshit. I just don't support them any more except through the outlets I choose. I use Hulu and Netflix. Media companies own Hulu and they can't even do it right due to their greed, it's pathetic.

The problem isn't Netflix or their business model, it's the insane greed of those working in media.

 

[spacelord]

I know people that have been investing on the bet that Netflix stock would drop. I think their wish came true.

 

[Fritzo]

I don't care about Starz. all of their Netflix content sucked, anyway.

You do know that they're the ones that supplied the movies that were 6 months old or less, right?

 

[Doppel]

lol. I got out the day they announced the hike. I can't take much credit, but maybe just a tiny, tiny bit. Nutflix definitely has some challenges ahead. First, DVDs will eventually go the way of the dinosaur, and second most people won't pay any meaningful amount of money for a streaming selection if it sucks as badly as theirs does. And eventually when DVD dies die their distribution network won't mean much. All they'll have left is any contracts with content providers to compete with. And a business like that can be ramped up very quickly by a party with the money, say like Amazon. At least Amazon knows their streaming selection is a pile of sh*t (granted much worse than netflix) and gives it as a "bonus freebie" to Prime members.

http://www.fool.com/investing/general/2011/09/16/should-you-hit-play-or-pause-on-netflix.aspx

In the wake of that shift, the company reported this week that it expects to lose some 600,000 customers, instead of adding a projected 400,000.

A lot of people have ditched cable percentage-wise, but many more have not. Most people actually still have some form of cable or satellite service. Netflix is only in a tiny fraction of homes comparatively, and their lack of unique content doesn't help.

Not only does it not help but it's the root reason. Netflix's DVD selection is obviously resplendent but its streaming selection is crap. Unless you watch anime or want to watch old steven seagull movies there's a damn scant offering of new content. The occasional new gem thrown in just to pretend they are something more than what they really are (a repository for old crap you don't want to watch). That's why even at $9/month it's a waste of money for a lot of people. I pay 5-6X that for directv but right now I can go over to my couch and pull from a multitude of DVRed shoes in high def and anything new is on there immediately, with huge gobs of selection.

I'd sign up for HULU or anybody at multiples of $9/month if I could pull from a huge, contemporary selection and it wasn't a second-tier dog-scrap type setup which most of the online streaming providers are. I'm really surprised that HULU is actually as good as it is. The free one has a decent number of shoes available the next day, it's impressive.

 

[ViRGE]

I'm not paying more than 10 bucks a month for access to older media. The content creators/providers are stupid because they didn't design their own delivery system now they want to try and rape us & Netflix for it. Bullshit. I just don't support them any more except through the outlets I choose. I use Hulu and Netflix. Media companies own Hulu and they can't even do it right due to their greed, it's pathetic.

The problem isn't Netflix or their business model, it's the insane greed of those working in media.

Ultimately there's no such thing as a free lunch. The content owners believe their content is more valuable than $10/month, and have no interest in selling access to it at those prices. The fact of the matter is that revenue per viewer per show from cable fees + advertising still handily beats the amount of revenue gained from AYCE streaming agreements.

A streaming service like Netflix is only viable if you have perfect price discrimination so that you're not undercutting other revenue sources, otherwise content owners are better off selling reruns to cable networks and episodes/DVDs to individuals.

 

[spacelord]

I don't care for the streaming because the picture quality is usually just ok more like so-so.. and sometimes horrible. Maybe its Comcast's issue.. but still sucks. They don't even have surround sound. I'm sticking with DVD plan.. and it will save me a couple bucks per month once i cancel streaming before my plan renews at the end of the month.

 

[Miramonti]

According to your chart, it looks like regression to the mean. The graph shows a fairly consistent growth until 2010 then it goes from 50 to 300 in less than a year. It will drop below 100 for sure.

You might be right on this one...this is one wicked ride.

 

[Schfifty Five]

Keeping my eye on this stock. Will consider buying in if it goes to 30-40 which is possible haha.

 

[dwell]

Almost dipped below 100 today. Wall Street does not like wishy-washy CEOs.

 

[wirednuts]

I don't care for the streaming because the picture quality is usually just ok more like so-so.. and sometimes horrible. Maybe its Comcast's issue.. but still sucks. They don't even have surround sound. I'm sticking with DVD plan.. and it will save me a couple bucks per month once i cancel streaming before my plan renews at the end of the month.

on my 42" flatscreen with 16mb cable internets, it looks as good as a bluray. internet connection quality matters greatly as silverlight will step down quality automatically to compensate for cpu load or connection speed.

 

[dwell]

on my 42" flatscreen with 16mb cable internets, it looks as good as a bluray. internet connection quality matters greatly as silverlight will step down quality automatically to compensate for cpu load or connection speed.

It's not even close to Blu-ray. The Starz content is at best upscaled DVD quality but it looks more like a VHS rip.

 

[Beev]

You might be right on this one...this is one wicked ride.

Why do your edits say 12-31-11 11:59pm?

 

[Saint Nick]

Why do your edits say 12-31-11 11:59pm?

He hard coded it into his sig, my guess And I have sigs turned off...

 

[Miramonti]

He hard coded it into his sig, my guess And I have sigs turned off...

How dare you turn off sigs while posting one. Blasphemy!

 

[Schfifty Five]

Why do your edits say 12-31-11 11:59pm?

not sure if srs.

 

[Patranus]

Investors are realizing that Netflix really don't bring anything to the table.
The technology is so common that networks and studios are releasing their own apps so they don't need Netflix.
Plus Netflix really lacks quality content.

 

[Vic Vega]

Dumped Netflix yesterday. Haven't used it in a month. The price hike bothered me as well.

I don't have cable either, no big deal. Spend most of my free time with the family anyway.

 

[Vic Vega]

Investors are realizing that Netflix really don't bring anything to the table.
The technology is so common that networks and studios are releasing their own apps so they don't need Netflix.
Plus Netflix really lacks quality content.

What Netflix had, was a huge customer base. That's what they brought. They still have that customer base for the most part. They also have their brand name. Some Internet savvy people know they can go watch most of the content for free from a dozen different providers, but lots of people don't, they just want to watch Netflix on their Wii, TV, PC, etc with no commercials.

 

[Miramonti]

Update: just hit $92.72 after hours!