Netflix In Turmoil
CBS chief Les Moonves is apparently unconcerned about the possibility that Netflix will become a major competitor, drawing away millions of TV viewers and using the networks' own product to do so. "We root for them so they can buy our content," he told an audience at the Paley Center for Media in Beverly Hills on Thursday. "We view them as a friend." He also invoked the mantra of the TV business community, "He who has the best content wins." Moonves also indicated that he has no regrets about not putting CBS content on Hulu. "We want to control our content," he said. Meanwhile, Netflix executives may have found themselves in need of some rooters. Shares in the company plunged 19 percent on Thursday, and the tailspin continued today (Friday), with shares nearing the close down an additional 8 percent to $156.80, as Caris & Co.'s media analyst David Miller cut his rating on Netflix stock to "Average" from "Above Average." Caris chastised the company for failing to anticipate the long-term effect of its recent pricing changes, which resulted in a loss of one million subscribers (although increasing overall revenue). That misdiagnosis he said, "clearly [calls] into question Netflix's ability to prognosticate the overall health of the business."