netflix, dvd rentals

Netflix could gain from loss of Sat. mail delivery

Netflix won't miss Saturday mail delivery, even though the weekend service helped keep the company's DVD-by-mail subscribers happy. The U.S. Postal Service's planned shift to five days of home delivery a week instead of six may even make Netflix Inc. slightly more profitable by lowering the costs for sending out its familiar red envelopes with DVDs. That's because subscribers may be able to watch fewer DVDs for the same monthly price.

Verizon to set up streaming service with Redbox

Phone company Verizon Communications Inc. will challenge Netflix and start a video streaming service this year with Redbox and its DVD rental kiosks.

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Netflix Inks Content Deals, Market Ignores Verzion Takeover Talk

Netflix’s stock rose by about 10% last week before falling lower, driven by rumors about potential acquisition by Verizon. While reports indicated that Verizon may be seriously considering the acquisition at around $4.6 billion, the company denied that it has organized any talks or meetings with Netflix. We think that Netflix will not sell itself at the implied price per share that results from $4.6 billion bid. For details see Verizon Would Have a Tough Time Acquiring Netflix which talks about why an acquisition at stated value is unlikely, be it by Verizon or another potential suitor Amazon. In general, several analysts including Trefis analysts see any acquisition as highly unlikely.

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Netflix is 'broken' with no fix in sight, analyst says

Wedbush analyst Michael Pachter says that increased content costs, a precipitous decline in subscribers, and a 'growth at all cost' mentality will continue to hurt Netflix in the future. Read this blog post by Don Reisinger on The Digital Home.

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Netflix uses 32% of Internet bandwidth

Despite recent troubles, Netflix is a major force on the Internet, accounting for 32.7% of peak U.S. downstream traffic, according to a new report.

Netflix shares down as DVD subscribers drop

Netflix Inc reported an increase in third-quarter revenue that beat analyst expectations but said DVD subscriptions would sharply decline in the fourth quarter, sending its shares down sharply.

Senh: What the article doesn't mention is how many Netflix DVD users have dropped their subscriptions since it the price hike in July. That way, you can see how steep the cancellation rate is. Everything should settle down by the next quarter, then we can see what the total damage is.

Netflix kills plan to split off DVD rentals

Netflix is abandoning its widely panned decision to separate its DVD-by-mail and Internet streaming services because it would make them more difficult to use.

Senh: Props to Reed Hastings for listening to his users and reversing the two site decision. It takes guts to admit that you're wrong to the world. Together, DVD plus streaming, makes Netflix a much better proposition. They're also the only company that's able to do this. It differiates them from the competition.