Showing posts with label Netflix. Show all posts
Showing posts with label Netflix. Show all posts

Monday, March 28, 2011

Showtime for Netflix! (NASDAQ: NFLX)

NEW YORK - Starz a subsidairy of Liberty Media Corp will delay new content streaming on Netflix for up to 90 days. Starz, which purchased the right to show Disney and Sony movies, in turn sold that right to Netflix which has allowed the company to prosper. A media analyst was quoted as calling this “probably one of the dumbest deals ever,” as it gave Netflix an avenue to grow for a cheap price.

The deal between the companies ends in 2012 and most analysts expect that Netflix will pay more for this content deal, if it is renewed. The current cost is around $30 million a year. Recently, Netflix has been paying increasingly more for its content as evidenced by the following deals.

It announced a deal with Epix Studio for $200 million a year, which allowed them to show a large amount but mostly older movie titles. It then announced a deal with Relativity Media to show its library of only 30 or so movies for $100 million a year. It later announced a deal with Disney to air some of its shows for $200 million. Last week it announced a deal that sees the company pay $100 million for the right to show one television show the "House of Cards" starring Kevin Spacey, which will air exclusively on Netflix.

The deal with Starz is unique, in that it provides a large amount of premium television shows and movies, for a much cheaper price than its later deals.. The contract soon expires which we means, Netflix subscribers may lose access to the large amount of content.

To read our premium Netflix report click here.

It's Showtime for Netflix (NASDAQ: NFLX)

NEW YORK - Starz a subsidairy of Liberty Media Corp will delay new content streaming on Netflix for up to 90 days. Starz which purchased the right to show Disney and Sony movies in turn sold that right to Netflx which has allowed the company to prosper. A media analyst was quoted as calling this “probably one of the dumbest deals ever,” as it gave Netflix an avenue to grow for a cheap price.

The deal between the companies ends in 2012 and most analysts expect that Netflix will pay more for this content deal, if it is renewed. The current cost is around $30 million a year. Recently, Netflix has been paying more and more for content as evidenced by the following deals.

It announced a deal with Epix Studo for $200 million a year, which allowed them to show a large amount but mostly older movie titles. It then announced a deal with Relativity Media to show its library of only 30 or so movies for $100 million a year. It later announced a deal with Disney to air some of its shows for $200 million. Last week it announced a deal that sees the company pay $100 million for the right to show one television show the "House of Cards" starring Kevin Spacey, which will air exclusively on Netflix.

The deal with Starz is unique, in that it provides a large amount of premium television shows and movies, for a much cheaper price than its later deals.. The contract soon expires which we means, Netflix subscribers may lose access to the large amount of content.

To read our premium Netflix report click here.

Sunday, March 27, 2011

It's Showtime, Starz Tightens its Grip (NASDAQ: NFLX)

NEW YORK - The backlash against Netflix (Netflix Report) has officially arrived, as the studios have begun to protect their product that Netflix covets. Showtime and Starz will no longer provide Netflix with old episodes of "Dexter" and "Californication," while new episodes will be delayed for up to 90 days. Starz also plans on withholding more movie titles in the future.

Starz is the company that CEO of Time Warner Jeffrey Bewkes said, “undermined the business model of cable television." Netflix has also said it is hoping for a new deal later this year with the company. However this may not come to fruition given the recent news. The media companies are afraid, that since Netflix's service is so cheap that they may become the main distribution center for content.

Not so fast Netflix says the studios. The studios controls the content which Netflix covets, meaning the studios can control their puppet with strings. This can be done by forcing their puppet to pay a higher and higher price. Netflix realizes this and it is hoping to break these strings, as it has announced a new TV series called the House of Cards starring Kevin Spacey which will air exclusively on Netflix. This could be a game changer if Netflix itself becomes a studio. Netflix may realize it is not profitable to broadcast a television show without adding commercials and once they add commercials, they will have come full circle and have replicated the model they sought to change.

Our Netflix report can be purchased below.





Wednesday, March 23, 2011

Netflix Stock Moves Lower (NASDAQ: NFLX)

NEW YORK - Netflix the online media confirmed a deal with Kevin Spacey to air the new TV series the "House of Cards."

What is known is Netflix will spend another $100 million in content. The company is already locked into spending over $1.2 billion in content in the next 2 years, which Netflix is betting it will be able to pay for.To read the latest exclusive report click here.

To see our full Netflix report click here or purchase below.






Friday, February 4, 2011

Socialist Canada Can Take a Breather (NASDAQ: NFLX)

OTTAWA - Canada's (Pronounced Ka-Na-Da) Prime Minister Stephen Harper said he would quash the recent decision by the Canadian Radio Television Telecommunications Commission (CRTC) on a ruling which set a cap on internet usage. Harper is demanding the government agency back down or he will personally overturn their decision.

"The CRTC should be under no illusion. The prime minister and the minister of industry will reverse this decision unless the CRTC does it itself," a senior government source said.

The chairman of the CRTC Konrad von Finckenstein will have an awkward address on Thursday night when he explains to Canada his little mis-hap.

The ruling by the CRTC forced all Canadian to be under a 25 gigabyte data cap. The idea was that customers would be charged on how much they used over this amount. But Canadian consumers were up in arms.

This isn't the first time the government agency has been overruled. In 2009 they tried to block a bid that would have Globalive Wireless Management Corporation set up a cellphone service in Canada.

In the U.S. certain companies have tried to charge customers based on usage such as Time Warner but have failed and have reverted back to unlimited plans. Perhaps companies in the future will settle on a model but it makes little sense for the government to be intervening.

Harper essentially said yes to the free market today.

Saturday, January 1, 2011

FamilyDollarflix (NASDAQ: NFLX)

NEW YORK - Netflix a company located in California has seen impressive subscriber growth since its beginnings in 1997.

However, the company may have a problem in the future of offering movies too cheaply instead of offering a more high quality menu of videos. The company's business model appears to be sell at any cost then worry about profitability. Because of this, its selection of titles can be seen as rather low, and perhaps the company will be hindered going forward.




To see the full Netflix report click here.

Sunday, December 26, 2010

Netflix (NASDAQ: NFLX) Killed the Video Store

Netflix (NASDAQ: NFLX) is poised to power higher this holiday season as the company is flooding the media networks with ads galore in a bold attempt to get the word out for its popular service. Netflix allows users to stream movies and TV shows directly to their television. The company is already partially responsible for the demise of Blockbuster (PINK: BLOAQ), which is trying to recover from bankruptcy. Netflix's $8 starting offer is making it the perfect gift for the holiday season. Investors will also be pleased to receive a gift in terms of subscriber and earnings growth.

Read the full Netflix report here.

Netflix (NASDAQ: NFLX) Killed the Video Store, BLOAQ

Netflix (NASDAQ: NFLX) is poised to power higher this holiday season. The company is flooding the media networks with ads galore in a bold attempt to get the word out there of its popular services. Netflix allows users to stream movies and TV shows directly to their television. The company is already partially responsible for the demise of Blockbuster (PINK: BLOAQ), which is trying to recover from bankruptcy. Netflix's $8 starting offer is making it the perfect gift for the holiday season. Investors will also be pleased to receive a gift in terms of high-powered earnings growth.

Read the full Netflix report here.

Tuesday, November 9, 2010

Netflix is "Cheap" (NYSE: NFLX)

NEW YORK - According to "Mad Money" Host Jim Cramer said "using the right metrics, Netflix is still a cheap stock." Cramer did this in a segment where he compared U.S. Steel to Netflix while purporting that they could not be compared but at the same time Cramer somehow came out with the overwhelming winner in Netflix. Allan Edwards the CEO of The Markets Are Open said "that lots of stock remain very cheap if you alter your analysis to find why they are cheap."

Netflix faces competition from free downloads, PVR, Cable Boxes, Satellite, DVD's HULU and video rental stores. Edwards finished if Netflix was a music website like Napster investors would value it extremely low since people know a lot of music is downloaded illegally. At the same investors have not factored in the growing internet DVD library.

To see the full Netflix report click here.

Monday, November 1, 2010

Does Coinstar (NASDAQ: CSTR) Stand a Chance Against Netflix (NASDAQ: NFLX)?


Coinstar (NASDAQ: CSTR) and Netflix (NASDAQ: NFLX) each offer their users movie and DVD rentals. But the real question is, which company does it better? Coinstar operates pay machines where users can rent movies and then return them easily. Coinstar simply needs to update its machines every time it wants to add new movies, however all of the delivery services are handled essentially by the user. Netflix on the other hand allows its subscribers to download the movies online. It also ships DVDs to those who do not use the online option. The DVD can then be placed back in the mail. Netflix does incur delivery charges however which could grow depending on fuel prices. Its online business does seem to be the best model as the only limiting factor is bandwidth constraints set by the provider. However with the downloadable option, movies can be watched where ever, whenever. The mailing of DVDs is impractical when under time constraints.

Sunday, October 31, 2010

Does Coinstar Stand a Chance Against Netflix? (NASDAQ: NFLX) (NASDAQ: CSTR)


Coinstar and Netflix each offer their users movie and DVD rentals. But the real question is, which company does it better? Coinstar operated pay machines where users can rent movies and then return them. Coinstar simply needs to update its machine every once in a while with new movies, however all of the delivery charges are services essentially by the user. Netflix on the other hand allows its subscribers to download the movies online. It also ships DVDs to those who do not use the online option. The DVD can then be places back in the mail. Netflix does incur deliver charges however which could grow depending on fuel prices. Its online business does seem to be the best model as the only limiting factor is bandwidth constraints set by the provider. However with the downloadable option, movies can be watched where ever, whenever. The mailing of DVDs seems impractical when under time constraints.

Tuesday, October 5, 2010

Flickering Candle (NASDAQ:NFLX)

New York - Not even Jim Cramer will recommend Netflix stock anymore. Jim Cramer the popular figure on Wall Street and host of Mad Money on CNBC said that Netflix on Thursday finally reached a price that was to high and he could no longer recommend the stock. Since Thursday morning Netflix stock is down a staggering 12%.

There are some reasons to not like Netflix stock at the moment. Particularly the fact that the company only earns 8% profit for every dollar of revenue which is above Wal-Mart but not by much. It means that Netflix will have to grow rapidly in size to increase earnings. This is likely because of the high costs associated with showing Hollywood films and other movies. The producers of these movies want a large stake in the profit which limits Netflix's margins.

Netflix was one of the few stocks that finished the down on Monday. Traders are weighing the possibility that the stock may in fact be overvalued.

To see Kibbens full report Click Here

Wednesday, September 22, 2010

Netflix Finds Another Reason To Rise

Netflix (NFLX) rose 6.61% on Wednesday due to the long awaited chapter 11 filing of Blockbuster. Blockbuster which 10 years ago hit its peak stock price, 10 years later it shares trade at 2 cents. An investor would have lost over 99% investing in something that seemed as timeless as the movie renting business.

Blockbuster has had to report losses more often than not over the last 5 years. More people appear to be moving towards substitute services such as Netflix. Though Edwards commented that Netflix is just a buzz word to describe the new industry of renting movies digitally and no longer in a tangible form. He said Netflix is actually a very small business in the video market and does not feel it is appropriate to think a Blockbuster bankruptcy helps them. Edwards noted that Netflix stock now has a market cap of 8.2 billion when it has earnings of 120 million a year and tangible of equity of 100 million. The stock is valued all on the future said Edwards.

"10 years ago, Blockbuster was a titan and fell, today Netflix may become a titan but its uncertain but the stock is priced into one day become a titan and ignores any possibility of a substitute service coming around. Blockbuster got priced as a titan when it was one, Netflix gets priced as one when it isn't." Edwards reiterated to holders to sell Netflix stock and the stock is ready for a huge decline coming up. Calling it the most overvalued stock in the world.