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| 12/25 |
| 2007/7/23-28 [Recreation/Media] UID:47391 Activity:nil |
7/23 I don't get it. Blockbuster is killing Netflix, yet Blockbuster's
selection is crap.
http://biz.yahoo.com/rb/070723/netflix_results.html?.v=2
\_ Last think I read, just a month or so ago, was that Blockbuster
was failing miserably.
\_ I used to be a Netflix customer about 7 or 8 years ago -
whenever it was that DVD was still pretty new and most video
stores didn't carry them. I didn't see the point in staying
with them. I paid a monthly fee whether I rented or not and the
service started degrading over time. You could have fewer
with them. I paid a monthly fee whether I rented or not and
the service started degrading over time. You could have fewer
movies out at a time, they had to be received before they would
ship new ones, and they got lost or stolen in the mail. I know
Blockbuster has now adopted a similar model, but I just go into the
video store when I want a movie. I find that cheaper and more
convenient. I liked the Netflix selection, but it's not really about
selection. One nice thing about Blockbuster's plan is that you
can return and checkout movies at the video store in addition
to using the mail.
Blockbuster has now adopted a similar model, but I just go into
the video store when I want a movie. I find that cheaper and
more convenient. I liked the Netflix selection, but it's not
really about selection. One nice thing about Blockbuster's plan
is that you can return and checkout movies at the video store
in addition to using the mail.
\_ My guess is that the average American consumer doesn't care
about "selection," they are interested in having the latest
Hollywood release the day it comes out. Netflix is pretty
bad about that sort of thing, especially if you live in a
remote location. BB is much better for the average american
because they only stock the latest Hollywood POS.
Personally, I'll stick with Netflix b/c they have a better
selection of foreign, pbs, bbc, nat'l geo, gay, &c. than even
the Cupertino library. |
| 12/25 |
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| biz.yahoo.com/rb/070723/netflix_results.html?.v=2 News), the largest online DVD rental company, on Monday reported its first-ever quarterly drop in subscriptions and cut forecasts for subscribers, revenue and profit for the year in the face of fierce competition from Blockbuster Inc. The stock had already closed the regular trading session 12 percent lower after the company cut prices on two of its subscription plans. Chief Financial Officer Barry McCarthy told analysts on a conference call that Wall Street estimates for fiscal 2008 earnings growth were "excessively optimistic." "When Blockbuster decides to operate its online business profitably, our financial results will improve also, but until that time both subscriber growth and earnings will remain under pressure," McCarthy said. Netflix has spent the last six months fending off a rising challenge from Blockbuster, which said it will spend $170 million this year to promote its Total Access plan. That allows subscribers to swap DVDs rented online at its stores for free and has become a powerful competitor to Netflix. The Los Gatos, California-based company, which pioneered online DVD rentals and controls two-thirds of the market, said its net subscriber base dropped to 674 million from 68 million in the first quarter. Despite the raft of bad news, Netflix beat Street profit projections by a wide margin, and Chief Executive Officer Reed Hastings said the company expects to sign up more subscribers in the back half of the year "even if there is no change in competitive landscape." Hastings said the downward revisions of Netflix's forecasts reflected a worst-case scenario that Blockbuster would continue to run its online business at a loss. WAITING IT OUT "They are responding in ways that make sense, ways that arguably are the best way to try and protect shareholder value, but that doesn't mean shareholder value will go up," said JP Morgan analyst Barton Crockett, who has an "underweight" rating on Netflix. Excluding some items, Netflix earned 31 cents per share, compared with the Wall Street target of 25 cents per share, according to Reuters Estimates. Wedbush Morgan Michael Pachter, who has a "sell" rating on Netflix, said the company appeared to have cut marketing spending. "If they don't spend money on marketing they are delusional if they think it's going to attract millions of subscribers," Pachter said. Netflix now expects to end the year with 68 million to 73 million subscribers, down from a previous forecast of 73 million to 78 million. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. |