http://money.cnn.com/2013/04/22/technology/netflix-earnings/
As college students, we live off of Netflix. When the stock declined in 2011 many users unsubscribed however this article tells us is that the stock has risen significantly (25%) due to specific changes the company has put in place. Because the product changed the expectations of its costumers changed, increasing the interest. Comparing the stock to the world wide phenomenon of Harry Potter, it was not a phenomenon at first but in the long run it blossomed.
I think the two concerns stated in the article talking about the costs of producing a new series for example "House of Cards" were 100 million for just two seasons. Also, the market for streaming television and movies is expanding which is making it more difficult to buy the rights to use other television shows made by outside studios which might bring down the appeal of Netflix as opposed to other providers that carry the new season of "Dexter" or "Mad Men"
ReplyDeleteAs a prescriber to Netflix I can vouch for the product it is very convenient to watch movies and TV shows on, but they have slim pickings for what is available online. Netflix is a very profitable company because it is less expensive than most cable bills. i can see why the stock has risen significantly as of late with new shows and seasons coming more readily available weekly.
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