MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Netflix (NFLX)-- How Much Is Cost Really Impacting New Subscribers ?

TedTed
in Off-Topic
FYI: One of the reasons Netflix (NFLX) cited for its slightly weaker-than-expected subscriber growth was its recent $1 increase in the monthly subscription cost for the service. Over at Bespoke Market Intelligence, we run a quarterly consumer survey on Netflix (NFLX) and other streaming media companies to track the sector, with extra attention paid to Netflix. We just ran our most recent survey earlier this month, which is available for purchase if you're interested. It's a must-read piece of research if you have a big position (either long or short) in Netflix. Visit our "custom studies" page to learn how to purchase.
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2014/10/16/netflix-nflx-how-much-is-cost-really-impacting-new-subscribe.html?printerFriendly=true

Comments

  • JohnChisum
    If one actually reads the story, it is not the measly dollar increase that has affected growth. Anyone that cannot afford another dollar a month shouldn't be one the service to begin with.
  • ShostakovichShostakovich
    Tangent:

    The issue I have with Netflix (as a streaming subscriber) is that they always come up with some kockamamy rationale for raising the fee. The service seldom improves; and the streaming selection improves very very slowly. NFLX has a history of doing stupid things then apologizing to customers, and then doing something equally stupid shortly thereafter. My wife has come close to cancelling twice just because she's irritated by the way they treat customer.

    I would think there's easily room for someone else to come in and take some business out from under them.
  • ronorono
    Howdy folks,

    Netflix blazed the trail in streaming content but while they've been providing incredibly bad customer service since the beginning, the rest of the world has carved out their own space in the streaming space AND they're providing good service. Two reasons to short Netflix - market restoring equilibrium and thereby eliminating their monopoly AND being completely brain dead with regard to the concept of customer service and goodwill.

    BTW, witness HBO setting fire to the cable industry. Wow. Going forward, HBO will be available directly to your device without having to subscribe to some cable service. Do you folks realize that $5 a month of your cable bill is for ESPN whether you watch it or not. This is the beginning of the end for the cable industry as we know it. Study the tealeaves for shorts here.

    peace,

    rono
  • ShostakovichShostakovich
    rono -- good points. Kudos to HBO.
  • JohnChisum
    The point about ESPN becomes even clearer when you remember that Disney has a 80% stake in that network. Disney is the big winner here and one of the cable giants with these channels under the Disney umbrella:

    All ESPN channels
    Disney
    ABC
    Lifetime
    History
    A&E
    Biography
    Crime and Investigation
    and a whole bunch more.
  • VintageFreakVintageFreak
    The future of Netflix is to become a provider of its own content. House of Cards is a good start. Thing is TW is wising up to this with its new HBO service.

    Still for $10 a month, I don't think you can beat Netflix. A lot of people simply use it instead of Cable TV.
Sign In or Register to comment.