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Netflix Shares Tumble Over Subscriber Growth Fears

Netflix Inc. (NFLX) added 1.74 million streaming subscribers in the U.S. during the first quarter but failed to satisfy investors' concerns about the video delivery company's ability to grow its business.

 

YouTube, Google Play add 600 MGM movies for rent

Google is adding 600 movies from Metro-Goldwyn-Mayer to the titles it has available for rent on YouTube and also Google Play, its digital content store for Android-powered mobile devices.

 

Verizon to set up streaming service with Redbox

Verizon Redbox Streaming Service

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

 

Netflix shares surge as customer base grows

Netflix

Netflix Inc won back Wall Street's affections on Thursday after adding more U.S. subscribers than expected in the fourth quarter, a rebound that prompted analyst upgrades and the company's biggest one-day stock jump in two years. The Los Gatos, California-based company's shares soared 23.5 percent to $117.40 in afternoon trading. Shares had dropped to a year's low of $62.37 on November 30.

Senh: Looks like the quiet time that Netflix had helped them to concentrate on their business and gained more subscribers. I like their "Just for Kids" feature they developed on the Wii during their quiet period. It's just what I was looking for as a parent. The Leapfrog shows there at least helped my kids with their abc's and 123's. They should roll it out for other devices.

 

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.

 

Netflix Huge Loser If Verizon Partners With Redbox

Verizon may not have had much bargaining power with its currently minimal streaming subscriber base, but a partnership will help Verizon leverage Redbox's established relationship with content providers to get more favorable deals. This could lead to less of an impact on gross margins than had it decided to go alone.

 

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

Netflix

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.

 

Netflix uses 32% of Internet bandwidth

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 kills plan to split off DVD rentals

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.

 

YouTube to Broaden Film-Rental Service

YouTube to Broaden Film-Rental Service

Google's YouTube is expanding its movie-rental service, as the video site tries to shift from homemade videos to professional entertainment content.

 

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