Existing base: 24 million customers rate hike: ~$6 per customer Total Take: $144 Million
Total needed to pay off debt due in one year: $1.1 billion Less money made from rate hike: $956 million
Now find out how many subscribers have to beat down Netflix's door because they like that they raised their rates 60% in a recession:
$956 million/$16 = ~60 million subscribers...
"So to summmarize, as of 6/30/11, Netflix had $175 million in cash. Most of its other assets consist of the streaming content library that has an expiration date. They've made $128 million in net income year to date, and have generated negative cash flow YTD (-$19 million). Yet Netflix owes $1.157 billion within a year. That is a huge shortfall, and those numbers should be alarming, even for a company that is still growing, which Netflix is not. It has lost at least a million customers so far in Q3 according to its own revised guidance. Plus, content costs are only going to keep increasing as the competition grows."
You gotta be kidding me, how's breaking 107 going to help the longs? That's a pretty low standard for a stock as volatile as NFLX. Why not make the standard lower like 104? Face it, it's all over, the Fat Lady has already sung... Peter