Room For Growth - Streaming Video Games. Examiner Article, Dec 7, 2012
Netflix is one of the most popular video rental services in the world that has made their mark by streaming movies and television shows on the internet. The innovative company has developed an infrastructure to store, manage, and deploy their video content to users that can be accessed by the leading video game consoles such as the Sony Playstation 3, Nintendo Wii U, Microsoft Xbox 360, and more. Netflix has a huge following of users that access their content over these video game systems to fulfill their entertainment needs.
Netflix has the opportunity to promote their new video game service to their millions of existing customers that subscribe to their service and are always looking for new content. These customers that watch Nextflix through their video game consoles would be a prime population of users that Netflix can have upgrade their account to be video game subscribers. This will lead to new revenue being generated for the company and the ability to earn more money than before from each subscriber. Netflix would begin to diversify their product portfolio and would create more opportunities for the organization to become a leading provider for entertainment in the industry.
The issue could be the initial investment that the company would have to make to build an infrastructure that would allow Netflix to stream video games to their users. As with building any service this would require money, management, coordination, collaboration, and heavy expectations from investors. The expected number of subscribers could initially become more overwhelming to their data center in which they may have anticipated. Another issue is that more people are starting to play their video games on their mobile devices because it is far cheaper to buy games than on a video game platform. Netflix would have to take this into consideration in the type of games, costs, and level of interest that could be projected in the long run for this service.
You know, Zak, I think my sentiment has changed to a Buy - I was actually just thinking about that. I have bought on dramatic dips when I could. My sentiment was a Hold because I did believe it was going higher, but only so much so as not to justify accumulating more at these levels. I got in at the mid 60's. My target was mid-90s near term, low 100s midterm. Not anymore. Near term - this could be in the 100s this week, or next. It would not surprise me if January saw 130s. After that though, I have a hard time setting a realistic target because if the news is so good to pop this to 130s, wouldn't take much to send this up like a rocket ship after that. I'm a Buyer here - well, I will be when I get some more cash. :)