It wouldn't be too difficult for Facebook to leverage their user base and charge $8 per month and offer better experience than Netflix to a billion people.
With all of the supply of online space for advertising you would think that pricing would be coming down for online ads. From Google, Facebook, Yahoo, AOL, TV, radio, print, etc.......Who has the never ending budget of ad dollars?
Amazon will give it away for free with the purchase of the phone.
Problem is that low rates don't matter any longer.
They can't go lower and the market is up to the point that the returns are horrible even at the low rates.
This means the FED needs to print just to keep this bubble propped up. THis is what Japan has been doing for the past 20 years. It is over, there is no way out for the FED.
If the rates go up even 1% things will go bad quickly.
Even a blind chicken sometimes gets the kernel.
Everything was going well in 2007...
I guess we'll know once momentum swings the other way. For overleveraged, it may be very painful.
The entire growth is subject to the above question. In the mean time saturation is already here for the US where you can sell anything to the lazy fat slob on the couch.
No conviction to hold here. No reason either. US subs slowing, European Subs contributing to the loss.
Content costs through the roof, even Cramer is amazed at the number.
It takes 17 months to get to this amount without spending a penny on salaries, servers, office space, overhead, executive perks, taxes.
This space will be diluted quickly.
Plus, Redbox is always in the action. Comcast will push their own stuff.
Content Liabilities at $7.7 billion.
Because they don't have the infrastructure.
That's why Comcast can mess up NFLX model overnight.
If you don't want it, you can pay for NFLX, but $15 extra stays.
That is equal to buying NFLX now.
but these people will leave if someone gives them a better deal or the growth with be diluted.
So, anyone paying this much for a stock with questionable growth potential is nuts.