NFLX Continues to Clean Up... BBI Cash Starved And Fading
All the BBIers keep harping on their sub growth, but always fail to mention that almost every sub up until now has been a loss leader. Also, the Total Access plan has mainly succeeded in attracting high volume users, who are unprofitable as customers.
NFLX had a mediocre quarter with weak sub numbers, yet they turned in their second highest profit ever at $0.37 per share. Their new more aggressive price structure will capture new subs and they will continue to be profitable.
Meanwhile, BBI already owes $817 million and will likely close at least 10% more of its stores next year for $0.10 or $0.20 on the dollar. With operational losses of $116 million last quarter, BBI must do everything in its power to mask these numbers by continuing the yard sale on assets.
BBI recently raised TA by $7.00, so this is a critial juncture for them. Can they retain subs with this 41% hike? How much steam will this take out of their sub growth? Stay tuned to this same Bat Channel, same Bat - Time.
"an item is sold below cost in an effort to stimulate other, profitable sales." ***** BBI had $116 million dollars in operational losses last quarter, so apparently the stimulation effort has failed. They're a loss leader, all right.
Your analysis has already been shown repeatedly to be a joke. You have no shame coming here like you are some expert with your pathetic record. I thought all the bad news for NFLX was "baked in," stud? What happened?