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Netflix in jeopardy....???

Discussion in 'Off-topic Zone' started by Dallas, Oct 25, 2011.

  1. Dallas

    Dallas Old bulletproof tiger

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    Is this the end of the road for the DVD-rental business?

    More than 800,000 subscribers fled in the third quarter amid rising prices and growing anger at the company's flip-flopping business model -- and the company's stock took a rollercoaster-style plunge that evaporated capital and had day traders gasping for breath.

    Some analysts argued that the trouble with once high-rolling Netflix is a fresh nail in the coffin of the DVD rental business.

    "The future is clearly streaming now -- it's only a matter of time before all disk-based media becomes obsolete," Rob Enderle, a leading technology analyst with The Enderle Group, told FoxNews.com.

    "It’ll die in cities first and die more slowly the farther you get away from high speed network connectivity," he said.

    Enderle may not be the only one to make that conclusion: Netflix shares traded around $75 for the first time in 18 months, a 36 percent plunge Tuesday that continued a tumble that has erased about $12 billion from the company's market value in just 104 days.

    :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek:

    How does the CEO keep his job? All of this was BECAUSE of his decisions on price and splitting the company into 2, then to squash it all and beg folks to come back because they changed their minds, cept for the price increase.

    :laugh2:



    Read more: http://www.foxnews.com/scitech/2011...s-customers-flee-earnings-tank/#ixzz1boenhydG
  2. BrAinPaiNt

    BrAinPaiNt Brotherhood of the Beard Staff Member

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    I understand having to raise prices.

    Originally they were getting a killer deal because the studios probably did not think it would do well. THe studios now see how much money it makes and probably wanted a huge chunk.

    However, they could have gradually increased the price instead of trying to raise it up all in one take.

    Plus that silly splitting up services and causing confusion then trying to double back and change around just looked terrible.

    I am just glad I never got into netflix because it would suck having something so good basically ripped away like that.

    Sadly, in this day and age, I am sure the CEO will walk away with a killer severance package that will have him whistling to the bank.
  3. Dallas

    Dallas Old bulletproof tiger

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    Showing the hit the stock took there at the end summarizes it real nicely the damage thats been done.

    Very sad to see them doing so badly. You are correct though BP. My staff and I were just discussing this. Everyone said the same thing..

    "f they hadn't increased the prices the way they did overnight."

    What a terrible decision and had Elite written all over it. They actually thought people would stand by paying those prices w/ the content that they have available and the huge 30 day waiting period for new releases.


    Punch to the face time.....
  4. Sam I Am

    Sam I Am Unfriendly and Aloof!

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    The massive raise is price wasn't Netflix fault. The movie studios did it. The movie studios demanded higher prices once their contract had to be renewed. It ends up being a poison pill of sort for Netflix.

    The RIAA and MPAA are ran by greedy idiots.
  5. UVAwahoos

    UVAwahoos Benched

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    This entire drama has been such a joke. How dumb is this CEO? They handled the price hike sooo terribly, and then they arrogantly tried to say that we're still getting an amazing deal. The streaming options on that site are so thin...I don't think I've talked to anyone who is happy with it. I didn't mind when streaming was included, but they're nowhere near close to working the deals required to really make it worth paying separately for. Apparently production companies have hiked their asking prices into the billions for streaming rights. If they're losing 800,000 customers, I am not sure how they plan on ever securing enough streaming to dominate the market over the plethora of competitors that are popping up at this point. If they had hiked prices to like $11.99 from the $9.99 that we were all paying, I think most would have happily stayed on with them and understood their reasoning. That was the first of many blunders in this story.

    They're essentially asking their customers to pay now for a service that they hope to develop and provide in the future. How does that make any sense?
  6. gambit187

    gambit187 Active Member

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    Netflix get it together lol...I loved them for my Xbox but dropped them due to no up to date dvds and when they decided not to renew their deal with Starz.....

    Why cant these companies see when they have a good thing and build on it first before they try rape us...smh
  7. Cowboy Brian

    Cowboy Brian Romo 2 Austin Zone Supporter

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    Didn't Starz want 5x increase in pay? They would make Netflix jackup prices to $30 a month lol.
  8. Hoofbite

    Hoofbite Well-Known Member

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    Netflix is just as guilty.

    Anyone who thinks their raise in price only covered the additional costs charged to them is insane.

    The fact that they were so profitable while charging a good price to consumer is a big fat neon sign that says they upped their rates the additional amount charged to them and then some.
  9. Hoofbite

    Hoofbite Well-Known Member

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    Who the hell watches Starz anyway?
  10. Cowboy Brian

    Cowboy Brian Romo 2 Austin Zone Supporter

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    No one what shows do they even have lol.


    Better to use the money to try to get HBO or Showtime programming, or FOX dayafter something like that.
  11. Duane

    Duane Active Member

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    I really liked Party Down and Spartacus.
  12. JustDezIt

    JustDezIt Formerly sm0kie13 ROY

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    I think what it was, was that they were able to have all starz movies in their catalog. from what i have read the others wouldnt do it because they knew it would decrease ppl paying for their channel.
  13. Dallas

    Dallas Old bulletproof tiger

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    If you go over to the NetFlix blog and read Reeds posts you will notice that you cannot comment on any of his posts, but you can on all of the other posts by other folks inside NetFlix.

    Strange because in the past, you could comment on his stupid decisions and apologies.

    Not anymore. :laugh2: I guess he got tired of being read the riot-act from his current and ex customers.


    12 Billion dollars, Reed!


    roll that number around a little bit....who gets to keep his/her job after being the one single culprit to drive away 1/3 of the customer base...
  14. Cowboy Brian

    Cowboy Brian Romo 2 Austin Zone Supporter

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    In normal business's you'd lose your job for causing a few hundred thousand in losses :laugh1:
  15. JonJon

    JonJon Injured Reserve

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    This will go down as one of the biggest business blunders in history.
  16. Illini88228

    Illini88228 Well-Known Member

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    Part of the deal with him keeping his job is that's his company. I know it's publicly traded, but it was his idea. It's harder to oust a founder than a CEO for hire.

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