Netflix, Inc. (NFLX)

idamoore (< 20) Submitted: 5/06/08 5:23 PM : Start Price: $30.70 NFLX Score: -2.63

Anyone who has downloaded media knows what a sloooow process it is. Moreover, the quality is not first rate. So, imagine that WalMart gets into the business. How many times do you want to see 40 Year Old Virgin? WalMart has zero taste. This is not an arguable point. They can't make any money on the vast number of movies available on Netflix. How many times do you think a movie such as La Ronde would get rented/downloaded/whatever at WalMart? Zero is close to the answer.
So why then did I say that Netflix will underperform the S&P 500?
Because Netflix's greatest asset is its huge (and gaining) repertoire of movies. The true Netflix addict is not only interested in the mainstream register of movies but also interested in world cinema. No way WalMart, Target, Costco, or any other clone of that ilk can ever match the diversity of Netflix.
Netflix's Watch Instantly movies list will just get bigger. The drawback is you have to watch it on a PC. Mac won't work. And you have to be a PhD to hook it up to a tv.
As people become more sophisticated about movies, get older, get bored with the Hollywood output and the so-called Indies, Netflix will be there with the goods.
Also, the people at Netflix aren't stupid. They see where movie watching is going. Some movies are available on Netflix shortly after the movies open (and then disappear from theatres in a flash) and that audience may hesitate in this charming economy to spend $10. or more for a half way decent movie. The popcorn's cheaper at home, too.
So, I believe in Netflix. I own shares of NFLX. I have a queue of more than 400 movies on Netlfix, on a program of 3 movies at a time, for less than $20. a month. To me, Netflix is a "raging bull."

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