Use access key #2 to skip to page content.

March 2011



The NFLX Dilemma

March 19, 2011 – Comments (4) | RELATED TICKERS: NFLX

The news yesterday that NFLX is buying a tv program inspired me to post about them again. I don't just think they have a valuation problem I think their whole subscription based streaming model is unsustainable and IMHO the tv series is a desperate attempt by Hastings to try to address a fundamental flaw in their subscription model. How do you keep subs renewing over the long haul with nothing but old movies, tv reruns and when STARZ renews what ever new content STARZ bread and butter Cable customers don't care that NFLX gets. Take a look at the article below and imagine what happens to NFLX model once they reach saturation with new subs. I see hordes of older subs walking because they've seen everything a dozen times already which will force NFLX to cut back on content to keep costs down in a death spiral.  [more]

Featured Broker Partners