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Technology Stocks : Netflix (NFLX) and the Streaming Wars -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (64)	1/14/2004 12:17:16 PM
From: Jim P.	Read Replies (1) \| Respond to of 2280

Dennis, Stock has been great. Go NFLX!!! Feel better... I have been following the co but not intensely. Do you know or is there any speculation on the worth of the customer base. The thought I have is that when NFLX gets a large base of users (I don't have a certain # in mind) that they would have a valuable asset for advertising new movie releases from the studio's. They could charge per unique hit on a film trailer from film makers. This might turn out to be cost effective to the studio and very profitable to NFLX. Any thoughts on this or has this already been covered and priced into the stock valuation. Jim

To: Dennis who wrote (64)	1/22/2004 11:24:17 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 2280

A profitable quarter, international expansion and a stock split. biz.yahoo.com UPDATE - Netflix swings to profit on subscriber gains Wednesday January 21, 7:42 pm ET (Recasts, adds comments from CEO interview)) NEW YORK, Jan 21 (Reuters) - Online DVD movie rental service Netflix Inc. (NasdaqNM:NFLX - News) on Wednesday posted a profit in the latest quarter compared with a year-earlier loss and said it plans to expand its services to international markets and the Internet. The company also said Barry McCarthy, Netflix chief financial officer, will step down at the end of 2004, with hopes to pursue a CEO or COO spot at another company. The Los Gatos, California company posted a fourth-quarter net profit of $2.3 million, or 7 cents a share, compared with a net loss of $2.3 million, or 10 cents a year earlier. Revenues surged 80 percent to $81.2 million, from $45.2 million last year. Excluding stock-based compensation expenses, the company reported a profit of $6.1 million, or 19 cents per share. That beat forecasts by Wall Street analysts, who predicted a profit of 16 cents a share, excluding charges, according to Reuters Research, a division of Reuters Group Plc. The results mark the company's third consecutive quarterly profit after it went public in May 2002. It competes in the online DVD rental market with Wal-Mart Stores Inc. (NYSE:WMT - News) and Blockbuster Inc. (NYSE:BBI - News), among others. Netflix CEO Reed Hastings told investors the company is hoping to launch its mail-order DVD movie rental service in the United Kingdom and Canada by 2005. "I think it's a matter of opportunity. There's a lot of UK movie lovers that would love more movie options and our strategy is to grow a very large DVD business. This is part of our expansion from a domestic to an international company," Hastings told Reuters in an interview. Separately, Hastings said Netflix is developing a way to let consumers download movies over the Internet, possibly also by 2005. Hastings said the new businesses will begin contributing revenues in 2005 and said revenues from international markets are expected to contribute less than 20 percent to the company's overall revenues. Netflix said it ended the quarter with 1,487,000 total subscribers, gaining 444,000 new trial subscribers. The company also announced a two-for-one stock split early next month. Looking ahead, the company expects to lose $1.2 million to $3.7 million under Generally Accepted Accounting Principles for the first quarter, on revenue of $94 million to $99 million. Excluding expenses, it said it would earn $1 million to $3.5 million during the period. For the full year 2004, it expects to earn on a GAAP-basis $14.6 million to $21.6 million, on revenue of $450 million to $475 million. It expects to end the year with 2.2 million to 2.5 million million customers. Netflix shares, which closed the day down 2.88 percent, shot up $5.20, or 7.9 percent to $71 on the Nasdaq market.