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Netflix: Using the Recession to Gain Strength?

Posted Dec 11, 2008 03:18pm EST by Sarah Lacy in Investing, Electronics, Media, Products and Trends, Recession
Netflix has struggled to prove it can still be a player in a world where people want videos on demand—not two days later in their mailboxes. But the recession might be just the leg up the company needed. CFO Barry McCarthy said the company was having a “remarkably strong quarter” amid the slump. And Piper Jaffray analyst Michael J. Olson said it was gaining market share against its rival Blockbuster.

My guest Om Malik may have been tough on Electronic Arts and Bebo in earlier discussions, but Netflix is one company he believes in. And it’s not just the theory that people want to “cocoon” in a recession. Om’s case on the video.

37 Comments

__A_YAHOO_USER__
__A_YAHOO_USER__ - Thursday December 11, 2008 03:38PM EST

May be.....May be not........Nobody really knows for sure.........

__A_YAHOO_USER__
__A_YAHOO_USER__ - Thursday December 11, 2008 03:40PM EST

Always liked netflix--we will be staying more at home.Though I did buy a 58" plasma.But hey,if I had money in the stock market,I would of lost a lot more.

Mad Tenant
Mad Tenant - Thursday December 11, 2008 03:57PM EST

I wouldn't count on streaming movies to catch on too quickly. At least not in high-def. We first have to see telecommunications open their bandwidth and stop being so damn stingy. If we see that happen I'd say that's the only way that the streaming movies will turn into a main source of their business instead of just a feature.

Amy
Amy - Thursday December 11, 2008 04:00PM EST

I love Netflix plus can stream the Instantly Watch movies through the XBOX 360 which is awesome...

Kane
Kane - Thursday December 11, 2008 04:04PM EST

What a joke this video is....here is the truth. I currently have 8 movies that are either "short wait, long wait, or very long wait". Their "on demand" movies are all old movies from 3 years ago. And their "new releases" recommendations are the worst. After 2 years of renting you can't figure out I may want to know when The Dark Knight is coming out? I have to go to Yahoo movies to see new releases and then head back to Netflix and add them. Please someone come up with something better and put them out of their misery. Don't listen to your consumers....it worked for Detroit.

Katrapalli
Katrapalli - Thursday December 11, 2008 04:05PM EST

I am closing Netflix account. Good movies are always late, and the online collection is very small. They just enabled online watching on MacBook but still not a good deal, with 16+ $s per month for 2 DVDs.

DJ-LOVE
DJ-LOVE - Thursday December 11, 2008 04:12PM EST

is netflix compatible with ps3

MichaelM
MichaelM - Thursday December 11, 2008 04:14PM EST

I prefer going to the local RedBox machine and getting DVDs for $1.

Steven
Steven - Thursday December 11, 2008 04:15PM EST

Being able to play the movies instantly and see on my 50 flat screen is awesome.

Sonal P
Sonal P - Thursday December 11, 2008 04:19PM EST

I dropped Netflix and started using a free online movie rental service last year. It's called THE PUBLIC LIBRARY. Putting all those tax dollars to work.

Yahoo! Finance User
Yahoo! Finance User - Thursday December 11, 2008 04:22PM EST

I have same opinion/experience like few other posters. All new releases are always short/long/long-long wait. I am using their service for about 3 years. It is getting worser day-by-day. Not many good titles in instant watch.

Victor
Victor - Thursday December 11, 2008 04:23PM EST

Netflix & Blockbuster are pretty good. You have to find a way around their New release listings though. They make you work to find them on their sites. I usually just go to Hollywoodvideo.com and look for the new releases put them in before a monday, for tuesday release which is the day they send out the new releases. You have to be first in line for new releases.

James
James - Thursday December 11, 2008 04:24PM EST

No, streaming netflix is only for the xbox360. NETFLIX HAS BLURAY... that's a BIG reason I use them. Blockbuster and all the physical movie rental places only have a handful of copies of BluRay titles. I agree about the "just released" notifications. I would love if they did that. Howecer I know they wont because it will be too much stress on getting the new releases out in time.

M
M - Thursday December 11, 2008 04:29PM EST

I sure as heck ain't going to blow $10-12 bucks on a two hour movie at the theatre when it comes out on dvd in a month or so. I'm saving every penny! The theatres can keep their $3 snickers bars, $8 popcorn jugs and $5 sodas.

kalem
kalem - Thursday December 11, 2008 04:32PM EST

If your movie is long wait status, they will not charge you. Just send them an email and they will work with you. I love netflix.

Woody
Woody - Thursday December 11, 2008 04:34PM EST

This article is not about how do you feel about your netflix account.. It is about the the potential this stock has. There are 8 million people already using netflix, yet 300-400million people in the USA. The potential for the stock has a great upside in this market because of what people are doing with there time at home rather than spending $30 for a night at the cinema.

Yahoo! Finance User
Yahoo! Finance User - Thursday December 11, 2008 04:47PM EST

I've been using Netflix for several months, and it is very cool. I will admit, however, that they need to expand their "watch instantly" selection of movies. The user interface is very simple.

Roger
Roger - Thursday December 11, 2008 04:48PM EST

Netflix is wonderful. I've been a customer since 2000. The price for the service has actually come DOWN since then. I'm only a 1 day ship from my local Netflix so the turnaround is very fast. Also, every movie that's been on "Short Wait" seems to come available in time and gets shipped to me. Another bonus is that if a new release comes out on a Tuesday, they will ship it on Monday so you'll have it the same day it releases (if you time your return to get there on Monday). You get a free 2 week trial so what do you have to lose?

Scot
Scot - Thursday December 11, 2008 04:50PM EST

I'm a small example of this. I got laid off in early October. Luckily I found a job 3 days later. But in my panic I cancelled my cable(except for internet and basic limited). then i got netflix with 1 movie at a time and streaming(i stream to my tv through my 360) for 9 bucks a month. My cable bill was 136 dollars a month and now it's 54 with netflix. I'll take the discount with or without a job. And I've had no problems yet.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Thursday December 11, 2008 04:54PM EST

All I can say is that the Street seems to like the stock and I wouldn't have minded holding a larger piece through out the last couple of months! But I don't watch many videos, so have no idea about their service or products...

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