all netflix is .is a giant email list. like groupon. eventually people will laugh at what they were willing to bid up such businesses
the bigger issue now is the great bull story of nflx is ending...and content providers of massive sway in the industry, showtime, starz, and cbs are pulling content or delaying content..and preferring cable providers
let alone pay per gb charges coming
the writing IS on the wall....the scam is about up now
my guess is if they even get a secondary off, it will be dumped as quickly as it can...and like gm will fade into the sunset to lows
don't forget not all of the 20 mil subs are paying customers. they are practically giving their service away for free. the profit is made w stocks by fooling wall street w/ the sub numbers. they give away free trials to get subs and for those who pay $8 a month is not even enuf $ to cover their business expense.
Thanks for all of the replies. This sure is a headscratcher in terms of where the cash is going to come from. My guess is that the Street anticipates it will be someone or something "big" (Microsoft?) which will inspire confidence in NFLX.
I agree about the subscribers and the overblown hype. Who wants to pay $12 billion for people who pay $8 per month and share their subscription with their hillbilly friends? Doesn't this sound like AOL all over again?
For the purposes of this table, contractual obligations for purchases of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The expected timing of payment of the obligations discussed above is estimated based on information available to us as of December 31, 2010. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations. The following table summarizes our contractual obligations at December 31, 2010:
Payments due by Period
Contractual obligations (in thousands):
Less than 1 year
More than 5 years
**8.50% senior notes
**Operating lease obligations
**Lease financing obligations (1)
**Content obligations (2)
**Other purchase obligations
(1) In the first quarter of 2010, we extended the facilities leases for the Los Gatos buildings. See note 5 to the consolidated financial statements for further discussion of our lease financing obligations.
(2) Content obligations include agreements to acquire and license content that represent long-term liabilities or that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate what the total obligation may be beyond any minimum quantities and/ or pricing as of the reporting date. For those agreements that include renewal provisions that are solely at the option of the content provider, we include the commitments associated with the renewal period to the extent such commitments are fixed or a minimum amount is specified. For these reasons, the amounts presented in the table may not provide a reliable indicator of our expected future cash outflows.
Top number in each **group is total for that category. Next number is due this year.
All this info is from page 33 of the most recent 10K.
Keep in mind, all those numbers are in 1000's.
$531,000,000 is due this year in content obligations. $1.5 billion in total. And thats before all the CBS/Showtime/Stars content issues. Rest assured, NFLX will have to pay more than their stated obligations.