Netflix: Don't Call Us Obsolete

Netflix announces its first-quarter earnings after the bell Monday, April, 21. With a spate of upgrades by analysts during Q1, Netflix is expected to demonstrate that its momentum isn't slowing, especially since its rival in the DVD-by-mail business, Blockbuster, looks to be more and more occupied with its bricks and mortar stores and a takeover bid for Circuit City. But as is always the case with Netflix, there are a lot of folks expecting the online video service to falter somehow - almost 40% of the public float is short-action. Still, those folks have been wrong in the past.

A Silicon Valley venture capitalist, proud of a recent Web 2.0 investment that offered digital downloads of video, once described Netflix (NFLX) as an "ice cube in the sun." That was almost three years ago, and Netflix, No. 46 on Fortune's list of fastest-growing companies for 2007, shows no signs of melting. All indications are quite the opposite. Last year was tremendous for the online movie-rental company based in Los Gatos, Calif., with net income up 36% to $67 million on $1.2 billion in sales. Analysts estimate overall sales will increase 13% in 2008 and 14% in 2009.

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Comments

[VivaZapata]

In the highly volatile world of technology innovations, Netflix replaced local video stores and even many Blockbuster, and that Hollywood something or other, chain stores. Now they are feeling the pinch of the rapidly changing tech formats.

[xcrunner77]

I love the new "online streaming feature. They only offer a small # right now, but it fills in the gaps while the physical discs are being mailed.

I still like the DVDs better for one big reason: the extras. Streaming video does not seem to give you the opportunity to view outtakes, bloopers, or most important, directors comments.

If there's a movie I really like that I've streamed i have to get the DVD later to watch the director's commentary. (of course, you don't know if there IS any commentary until you get the DVD.)

I also like being to watch on a screen bigger than my laptop, but the point is that for now, it's a good mix.

When they get a settop box they'll really have the whole thing down. But there could be higher charges from their broadband provider. Or if this is how the whole internet will crash, as in this week's Southpark.

As far as the competition with Blockbuster and how many movies you can rent per month, I find that I only have time for a certain number of movies per month. I don't need to be able to watch 50 movies a month -- I have other things going on in my life. I suspect that for most people this gets to be the equivalent of when AOL used to offer more minutes than EXIST in a month! Same thing with offering more movies than anyone can realistically watch.

[isis]

My dad has Parkinsons and just loves to get Netflix at home. But he has to have his grandson order it for him since he is computerphobic and sometimes he gets a surprise or two.

[trinity]

I personally love Netflix...I can get a lot more movies that aren't the usual flashy regurgitated garbage that is coming out of Hollywood these days. Far more than Blockbuster (or video stores) offer.

[sandiegoconservative]

Sorry to say it, but they are going to be obsolete soon. I got in on the Blockbuster deal when they first jumped into the fray and love it! 3 movies or TV show discs per month, plus a free coupon for another every month, plus when I take the discs in to the store down the street, I can rent another for free when I turn them in. 7 movies all for 14 bucks!

I have caught up on all the classics I missed or did not know about as a kid and can see an entire season of a show in about 2-3 weeks.

[Nyk]

Good luck with that....

Disgruntled ex-Blockbuster patron.

[tombollocks]

I won't call you anything. Hopefully my email a few days ago circulated. Whether its your or HuffPo's obnoxious marketing, I will gladly never use your service for one simple reason: Tribalfusion pop-ups. Yes, plural. Every time I'm on HuffPo I get 2-6 Tribalfusion advertising pop-ups for Netflix.

You've made me hate you.

[robinhood1]

Solve most of your advertising problems with free software called Ad Block Plus. It blocks many if not most ads and makes web surfing more enjoyable.