Netflix, Inc. (NASDAQ:NFLX)

TMFselzhanik (99.31) Submitted: 4/5/2007 2:51:45 PM : Start Price: $24.16 NFLX Score: +193.89

Netflix provides an awesome service, DVD rentals through the mail with a superior recommendation system and overall user experience. The problem I've had with them in the past as an investment is that I see 2007 as the year that the digital movie download / streaming makes its move into reality. Microsoft's XBox 360, Apple TV, Amazon UnBox / TiVo... the list goes on.

What is it going to take to be successful in this business from a techie point of view? Three things: A fantastic user interface / recommendation system is where it begins. An efficient digital delivery transport brings it from a business into a home. And a fantastic "box" that delivers the content to the TV, with high quality and a great interface. Until recently, I'd say Amazon / TiVo was the best bet, as Amazon has the web site and recommendation system, as well as an investment in torrent technology for delivery, and TiVo has a fantastic "box" to get it the last step of the way, to the TV.

But, what has happened lately? Reed Hastings, CEO of Netflix, joins the BOD at Microsoft on March 26, 2007. Then, just a week later on April 4, Cisco's Sr. VP Charles Giancarlo joins the BOD at Netflix, and is quoted, "while I love getting my red envelopes today, I can't wait to eventually get all of my Netflix content online." Netflix already had the top of the line solution for web interface / recommendation system. Now, with connections to Cisco, experts in delivery, and Microsoft, a top player in the "box" market with their XBox 360, Netflix could quickly become a major player.

And I’m looking forward to renting movies from Netflix, and watching them on my Xbox 360 Elite Edition.