RED ALERT IN USA: FRAUD LOOT IN BILLIONS AND S.E.C. CRIMINALS STILL PROTECTING CRIMINAL REED HASTINGS SCAM GANG
First, he needs to do something about the $5 billion in off-balance sheet obligations (just call it "debt"), Netflix owes over the next five years. I understand how Netflix books these costs over time, however, as a show of fiscal sense, the company should make adjustments to ensure investors and make that big number look less ominous.
Structure your content deals differently. Set aside a pot of money to match some of the due dates for those obligations. If Netflix operated from a position of strength, cash-wise, the debt would be less of a concern.
Second, increase spending to secure reruns of shows such as Mad Men, Breaking Bad and Louie C.K.. Push the angle that Netflix can be a partner with cable. As I explain in the above-cited article, it has already accomplished that with AMC Networks (AMCX).
There's another problem here, though. It's theme number three, but it's been around as long as and is equally as important as themes one and two.
As long as Netflix charges consumers $8 a month, it will have a difficult time collecting premium content. Starz ended its relationship with Netflix for this reason. Simply put, at $8 a month, Starz felt like Netflix devalued its content.
Before it does anything, Netflix should sell its DVD unit prior to Hastings running it further into the ground.
Right now, DVD is a death trap, a suicide rap for Netflix. Hastings has to get out while he's young. Put it up for sale. Somebody will be more than willing to overpay for the business.
From there, raise prices. But do it the right way. Actually use some marketing and customer relations to pull the move off.