Netflix at $200?
I have heard the speculation that Netflix is overpriced. It isn't worth the money and will be dropping soon. The fact is that as an investment, NFLX is just plain scary. At the moment, it is a scary $199.26. I don't actually have a subscription to Netflix. I just think that theater prices are insane. There has to be a seriously great movie to get me to spend for a theater ticket. Call this just one more area of sticker shock. I judge movies as worth owning, worth seeing, or just worth waiting until they hit the TV channels. My bet on Netflix is that there are enough people out there that either cannot or will not pay first run theater prices to make an alternative a safe bet. Netflix has the lion's share of that market and they have the name. (Do you really use Scotch tape or just call it that? How about Kleenex, just a brand or do you request a facial tissue when you are about to sneeze? How many languages use 'Coke' as the word for a cola drink?) Brand names matter. Thanks to advertising and a fast first start, Netflix is the first one that comes to mind for home rental or streaming movies and that lead has increased in spite of late starting competitors.
And after all, I am investing in it, not marrying it. ;-)