Netflix, Inc. (NFLX) Message Board

Redbox Instant by Verizon

As has been reported, Redbox Instant by Verizon is acquiring content for their service on a
per-subscriber basis, which is different than models used by most competitors. A significant amount
of content has been secured in this manner from various parties. This is an advantage for the JV as
it limits the risk profile of the joint venture, specifically the capital required to fund content.
It is also good for our studio and content partners as it enables them to participate in the
tremendous growth expected in this part of the industry.

While Redbox Instant by Verizon has not announced all of the content that will be available when we
move to public beta and launch, we jointly announced today that it will include SVOD content from
Warner Bros..

We expect the JV to announce details of additional partners as well as pricing for the product as
we approach public launch.

Redbox Instant by Verizon has completed the alpha trial with 500 employees and is currently in a
beta trial that will expand to thousands more Coinstar and Verizon employees over the coming weeks.
We will open the beta to the public later this year.

We expect Redbox Instant by Verizon will expand the Redbox customer base and further contribute to
our core physical rental business. In addition, we expect the subscription model will offset some
of the revenue volatility Redbox experiences due to its dependence on title strength and the new
release schedule.

Sentiment: Strong Sell

holy crap. Why would anybody invest in NFLX with so much competition for a space that has barely any margin to begin with. AMZN, Verizon, AAPL, MSFT are all monsters who can subsidize a movement into the streaming space with other revenue streams. NFLX has no other stream and is basically a 1 trick pony that will surely be given a 75% haircut by the end of the year. Look at what the mention of AAPL did to Pandora today. If AAPL came out tomorrow with an announcement about a major initiative in the streaming space NFLX would be in the single digits and out of business within 90 days!!! Who on earth would be long on this stock? The math simply doesn't work.. Someone please explain the long position to me because I just don't get it. Only a matter of time

Sentiment: Strong Sell

Streaming to you for 9.99/ month dvd/streaming package