Analysts Disagree About Future Of Netflix

Two financial analysts issued widely divergent views of Netflix's potential on Monday. B. Riley & Co. analyst Eric Wold noted that while Netflix has a clear lead in streaming -- mostly TV reruns, older movies, and a handful of original programs -- 64 percent of its profits continues to come from its movies-by-mail operations. Those operations, Wold observed, are at risk from competitive pressures by bundled subscription services in general and Redbox Instant by Verizon in particular. Redbox Instant, he notes, is able to offer many new DVD releases on the day they go on sale, while Netflix has to wait 28 days. Moreover Redbox Instant charges $8 per month for both discs by mail and streaming, about what Netflix charges for one or the other. On the other hand, BTIG analyst Richard Greenfield, who has been highly critical of Netflix's business model in the past, has apparently undergone a 180-degree change-of-mind. In fact, he writes, it is now hard to find anyone who does not want Netflix to succeed. In particular, he notes that Netflix may be benefiting from an intangible quality -- like HBO -- that will enable it to retain subscribers even during periods when people can't find anything to watch that interests them. They are trying to reach a point where consumers know that there will always be something new and interesting coming that requires a Netflix subscription, he wrote.



Contactmusic

Tags: HBO


Editors Recommendations

Is The Cannes Palme d'Or Heading David Cronenberg’s Way for 'Map to the Stars'?

The Cannes Film festival is sneaking up fast. The Oscars felt like they were 8 minutes ago...

Is The Cannes Palme d'Or Heading David Cronenberg’s Way for 'Map to the Stars'?

CounterPoint Festival 2014 To Feature Hometown Return of Outkast

Next weekend's CounterPoint Festival will be the event's first year at a new 5000-acre site, featuring...

CounterPoint Festival 2014 To Feature Hometown Return of Outkast

'The Amazing Spider-Man 2' - Not Perfect, But Really, Really Fun

Superhero movies have been striving towards the almost unobtainable goal set...

'The Amazing Spider-Man 2' - Not Perfect, But Really, Really Fun

Ricky Gervais is "Hooked" on David Brent Again - Former Paper Merchant To Return

A return for David Brent has been mooted ever since the character was wheeled...

Ricky Gervais is

This Labor Day, Jay Z Is Bringing "Made In America" To Downtown Los Angeles

Jay Z and the Mayor of Los Angeles Eric Garcetti have announced that the rapper’s...

This Labor Day, Jay Z Is Bringing

Anna Wintour wants 'more exclusive' Met Ball 2014

The editor-in-chief of US VOGUE magazine is reportedly determined for the annual...

Anna Wintour - Anna Wintour wants 'more exclusive' Met Ball 2014

'Mrs Doubtfire' Sequel Will Be Made 21 Years After The Original

The comedy classic 'Mrs. Doubtfire' is reportedly set to return to the big-screen...

'Mrs Doubtfire' Sequel Will Be Made 21 Years After The Original

'Of Mice And Men' Brings Out Broadway Talents Of James Franco, Chris O'Dowd

Of Mice And Men premiered on Broadway last night, giving critics a chance to cast...

'Of Mice And Men' Brings Out Broadway Talents Of James Franco, Chris O'Dowd

Sofia Vergara On Her Menage a Trois in Woody Allen's 'Fading Gigolo'

Sofia Vergara has been speaking about her nerves at shooting a ménage a trois with...

Sofia Vergara On Her Menage a Trois in Woody Allen's 'Fading Gigolo'


More recommendations

Comments

HBO Newsletter

Subscribe to this news alert service to receive news and reviews on HBO

Unsubscribe | Unsubscribe All