netflix fallout

[Geor!]

What is amusing is that the company had a $300 share price a few months ago, selling on some retarded P/E. Now all of a sudden it is worth a third of what is was back then? Fact is, this company was never worth that much, it was all hype, this is a $50-60 company on its very best day unless you believe that they can grow at 50% every year. The sheep will buy right in though, that is the stock market, it never changes. I would hate to be the sucker that bought it at $300. Or the guy who bought Green Mountain Coffee (GMCR) at $110.

I drink Green Mountain lol. No way in hell some indie coffee company is worth that much.l

[LS1Goat]

Still using Netflix w/the 2 disc a a time + unlimited streaming plan. Very satisfied. No problems. And more than ample streaming content. Great customer service and no other problems to speak off. IMO.

[347Mike]

What is amusing is that the company had a $300 share price a few months ago, selling on some retarded P/E. Now all of a sudden it is worth a third of what is was back then? Fact is, this company was never worth that much, it was all hype, this is a $50-60 company on its very best day unless you believe that they can grow at 50% every year. The sheep will buy right in though, that is the stock market, it never changes. I would hate to be the sucker that bought it at $300. Or the guy who bought Green Mountain Coffee (GMCR) at $110.

I said something similar a few pages back. The stock has been over priced for a long time and was begging for a drop. All this bad decision making accelerated it to the tenth power though.

Any other company I would set myself up for a possible bounce but I'm not touching this with a ten foot pole.

[slow99]

....Or Amazon (AMZN) which just got its fudge packed in after hours trading. Another company trading on an astronomical P/E.

I was talking about how stupid the NFLX valuation was when it was trading at $150... if I remember correctly it was about 70x forward P/E then.

[slow99]

No way in hell some indie coffee company is worth that much.l

How much?

[Fern]

They claim they've added thousands of choices to their streaming. The problem is that's the shit nobody wants to watch unless they're drunk or stoned and have an undying need to watch something obscure they had forgot about until then.

and this is why i love them!!

[IHaveAMustang]

Meh, just cancelled mine. Not entirely because the company seems to be doing circles, but because since I joined last year it went from $8.99 / mo to $17.59/mo after taxes.

I can't justify that price hike when I watch one dvd a month, if I used it more (like most people who keep the service) I would, but I just can never find the time to sit down and watch a movie for 2 hours...too much stuff to do!

[Geor!]

how much?

$110

[slow99]

$110

What market cap? What if they only had 10,000 shares outstanding?

[Geor!]

What market cap? What if they only had 10,000 shares outstanding?

[Geor!]

Redbox just raise their rates by 20%. Wonder how many customer they'll lose.

[roliath]

what alternatives are there? hulu plus is a joke.
dish streaming is only available to dish users. what else is out there?

[347Mike]

what alternatives are there? hulu plus is a joke.
dish streaming is only available to dish users. what else is out there?

The problem I think with Netflix and their decision is this:

Their services and selection at best (from what I heard and witnessed minimally) was mediocre and the fees were low. With that being said the moment they raised their prices the price to quality ratio wasn't there anymore. The users realized this and jumped ship as a result. Unless they change up what they offer I don't see a whole lot of people running back. Now of course I am sure there will be a few people who realize there is nothing else and they will come back but as far as the majority is concerned, I don't think they are coming back, unless they make drastic changes to their slections and offerings.

JMO

[Nate]

Business logic 101 says you can't raise prices without a greater "perceived" value.

As a customer I am used to paying X while getting a certain value. My two options are pay X plus 6 bucks to keep the same value or pay X and get less than what I had before? Makes no sense to your average consumer regardless if either option is still cost effective or useful for them.

My opinion is that Netflix could have obviously handled this better by simply adding some feature so customer Joe Schmo perceives it as additional value to justify a price increase regardless of it being worth it to them. Even if they don't use new feature, the value is there in their brain to justify it and keep them paying every month without second thought. Instead everyone went "fuck this I'm getting screwed. I'm out!"

I dropped to streaming for a few month but the selection never improved so I canceled. I didn't see the value of 1-2 mediocre movies a month for 10 bucks where I can on demands a new release on u verse for 6.

[ceyko]

I like the movies, documentaries and so forth. Only thing that really irritates me is the interruptions in the streaming lately. I have 30/30 internet via FIOS and a rock solid home network with all fairly high level gear. Zero problems elsewhere, except for Netflix. Only variables are the TiVo I do the streaming from and Netflix. May try it on my blu-ray player that does Netflix, see if that helps.