Re: Netflix to Boost Blu-ray Fee 20%, Citing More Demand
- From: Alric Knebel <alric@xxxxxxxxxxxx>
- Date: Fri, 03 Apr 2009 18:07:18 -0500
Thumper wrote:
On Fri, 3 Apr 2009 00:39:45 -0400, "Ar Q" <ArQ273@xxxxxxxxxxxx> wrote:
"Alric Knebel" <alric@xxxxxxxxxxxx> wrote in message news:UeKdnZOEWIePa0_UnZ2dnUVZ_qDinZ2d@xxxxxxxxxxxxxxxI personally think that the hype over on-line downloads is way to
| Invid Fan wrote:
| > In article <T-6dnYPW6PLDKUzUnZ2dnUVZ_gmdnZ2d@xxxxxxxxxxxx>, Alric
| > Knebel <alric@xxxxxxxxxxxx> wrote:
| >
| >> I hear that Blockbuster is in trouble,
| >> but I can't for the life of me figure out why. With a plan like this,
| >> they should be on top of the heap.
| >
| > Unless they're finding it's not possible to make money with that kind
| > of plan. Netflix "works" (I assume they're in the black by now) by
| > slowing down rentals enough so that their postage and other costs never
| > exceed what you're paying in monthly fees. The more Blockbusters is
| > letting you rent for that set fee, the less likely they are to break
| > even let alone profit. Especially since the money for online rentals
| > isn't going to your local store which has employees to pay and
| > buildings to maintain...
|
| Netflix is definitely in the black. Their stock went up 41% this year,
| according to the article in the OP. Everyone else's going down, and
| Netflix's going up. Kudos.
|
Actually Netflix stock price dropped to 52 week low when their DVD rental business shown no growth last year. What reversed the stock price action is that CEO said they will dominate on-line download business in the future. The key to stock price appreciation is pie in the sky because no one knows the future. You can promise anything. Most of my friends have switched from Netflix to Blockbuster or started rental at Blockbuster because we can exchange at stores.
Ar Q
premature. I think it will be nothing but a niche market for many
years. As a matter of fact if it really does take off the cable
companies stand to make out big time if the structure a good plan.
You already use their facilities for delivery.
I agree with you. I think it's being hyped by the industry itself, because they can lower prices a little, while the download is almost expense free for them. They'll make a killing. The profit margin will be much increased.
--
____________________________________________________
Alric Knebel
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