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• Netflix: By-mail business to peak in five years

  Posted May 29 2008, 11:38 AM by Kim Peterson
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  Filed under: Amazon, Blockbuster, Netflix
  Money Blog: Top Stocks Blog - MSN Money

  Netflix CEO Reed Hastings expects the DVD-by-mail business to peak in five years. That's the main reason the company is focusing on set-top boxes that stream video directly to the TV set. Investors tread carefully: Hastings' comments are more evidence that this is a company in the middle of a huge transition to a riskier, more competitive future.

  One growing threat to the company comes from Redbox, which offers $1 DVD rentals at kiosks in grocery stores and other locations and is a popular choice with this blog's commenters. Redbox is majority-owned by Coinstar and plans to file for an IPO soon. Netflix would be smart to partner with Redbox, offering customers another way to get movies between DVD mailings.   Read More...

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• Netflix holding strong against Blockbuster

  Posted Oct 23 2007, 09:46 AM by Kim Peterson
  Rating:
  Filed under: Amazon, Blockbuster, Netflix
  Money Blog: Top Stocks Blog - MSN Money

  I love rooting for Netflix. One reason is that in five years of being a customer, I've never had a bad experience. But the bigger reason is that Netflix has doggedly pursued its business model to become a worthy rival to BOB, also known as Big Old Blockbuster. After losing ground to BOB this year, Netflix has regained its momentum.
  

  The company surprised analysts last night with stronger-than-expected quarterly results and a 24% increase in subscribers, to 7 million. Its shares are up more than 9% today to above $25 as investors applaud the news.
  

  Netflix's outlook seemed bleak three months ago, when the company missed revenue targets and had its first drop in subscriber numbers. BOB, meanwhile, said its online subscribers rose by 600,000 to 3.6 million. Netflix's share price dropped below the $16 mark in July in response.

  Netflix has cut some subscription plans by $1 and reduced marketing costs to save money. A bit of a risky strategy, but one that seems to be paying off. Still, Netflix's position has always been volatile, and in the future the company faces increased competition from Amazon and others.   Read More...

  Discuss ( 118 comments) 49,187 Views Digg this | Email this | Link to this