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$31.12 0.48 (1.57%)
8/28/2008 4:00 PM

Netflix, Inc. (NFLX)

CAPS Rating:
***

The Company is a online movie rental subscriber which provides more than 6,300,000 subscribers access to a comprehensive library of more than 70,000 movie, television and other filmed entertainment titles on DVD.

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Avatar a1wes (28.41) Submitted: 8/20/06 6:56 AM : Outperform Start Price: $19.89 NFLX Score: 56.36

VOD is not an imminent technology. Bandwidth problems and lack of technology penetration are just two of the many issues that will keep VOD from being a primary force in the movie industry for many years still. It will come, and by the time it comes Netflix will be ready. They have a huge stockpile of cash, no debt, and a cash-machine business model. Sounds like the perfect company to be able to deftly incorporate a viable VOD model into the larger business. Remember, being first doesn't mean that you will be the best or be the winner. The first iPod came out approximately 3 years after the first mp3 players. Didn't seem to hurt Apple. And in the meantime, I'll just ride out the upshoot in subscribers as video rental storefronts close and MOVI and BBI continue to hemorrhage money. All of that and you can't beat the excitement of getting that little red envelope every couple of days.

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