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

To: Glenn Petersen who wrote (417)	4/26/2011 12:28:00 AM
From: zax	Respond to of 2280

7% of Americans subscribe to Netflix Source: money.cnn.com Netflix CEO Reed Hastings has presided over a decade of soaring growth at his video streaming and rental company. By Julianne Pepitone, staff reporter April 25, 2011: 7:03 PM ET NEW YORK (CNNMoney) -- Netflix knocked over a new milestone Monday: It now has more subscribers than the largest cable TV operator in the U.S. Netflix's global subscriber base grew almost 70% over the past year, to 23.6 million users. With that audience, it dethroned Comcast (CMCSA, Fortune 500) as the country's biggest provider of subscription video content. More than 7% of Americans now subscribe to Netflix. Email Print Those details came out Monday in Netflix's (NFLX) first-quarter report, in which the company reported earnings of of $60.2 million, or $1.11 a share. That's up from $32 million, or 59 cents a share, a year ago. Revenue rose 46% to $719 million. Both figures topped Wall Street estimates, but shares fell 2.5% in after-hours trade on light forecasts for the second quarter. Netflix said it expects earnings of 93 cents to $1.15 a share for the second quarter, lower than analysts' forecasts. When you're a giant, growth gets harder. Netflix said in its release that it expects subscriber growth to continue at a rapid clip for the rest of the year, but it warned that year-ago comparisons will get tougher in the coming quarters. The release also noted the emergence of new, competing services Hulu Plus Amazon (AMZN, Fortune 500) Prime. More content: Netflix is hoping to combat increased competition with more unique content. Last month, the company announced it had bought its first original show: "House of Cards," featuring Kevin Spacey. "This represents slightly greater creative risk than we've taken in the past, but we think it's reasonable given the popularity of the original BBC show," Netflix said Monday in a "letter to shareholders" released alongside its earnings report. Netflix will consider the buy a success "if 'House of Cards' is popular enough on Netflix so that the fee we've paid is in line with that of other equally popular content on Netflix at the time," Hastings wrote in the letter. The company said it hopes to "license two or three similar, but smaller deals" in the future. Netflix has also brokered deals with networks and studios. In its earnings release, the company admitted its recent deal with CBS "includes only a few on-air shows at present" -- but it also makes Netflix the only online subscription service to offer shows from all four broadcast networks. International concerns: Netflix launched in Canada late last year, and it ended the first quarter of 2011 with about 800,000 Canadian subscribers -- lower than the company had forecast. "We are still learning the seasonality curve and nuances specific to Canada," Netflix said in its release. The company had previously said it expected $50 million in operating losses in the second half of the year for the international sector. Now, it forecasts $50 to $70 million in losses -- "which we are comfortable with given the size of the opportunity." On a post-earnings conference call, many analysts' questions revolved around the situation in Canada. Hastings shrugged off most of the queries, saying "it takes time" to develop accurate data and forecast correctly in a new region. Hastings also said developing apps for Google's (GOOG, Fortune 500) Android operating system is "a big priority," but he wouldn't comment further on a timeline.

To: Glenn Petersen who wrote (417)	4/26/2011 8:06:10 PM
From: i-node	Read Replies (1) \| Respond to of 2280

>> Some perspective: Not sure the market had much "perspective" today.

To: Glenn Petersen who wrote (417)	4/27/2011 12:48:24 AM
From: 2MAR$	2 Recommendations Read Replies (1) \| Respond to of 2280

NFLX $229 ,sheds 9% (23pts) today off that triple top test @ $250/54 area even with what seemed to be blow-out numbers . The news i posted last night out of Google vamping up its YouTube movie rental offering , was also repeated today in the WSJ , sure to have an effect . online.wsj.com Been alot of insider selling & funds reballancing plus it was just plain overbought but at these multiples there's just always concern in a space that will prolly soon get crowded (low barriers of entry ), guidance that was a bit light and rising costs for content & expansion . Take a look what happened to TZOO today when FaceBook announced a Groupon initiative of its own , lost 14% in a day ...had a feeling there would be some kind of announcement from one of the competitors just after NFLX eps too . They're trying to pump up Facebook's worth ahead of its IPO ... See how it handles the 50ma @ $225 , barring no more similar announcements out of AAPL , WMT , Facebook etc to rattle the cage , its still sporting a high PE here this just a normal "reset"...though AMZN sure got a pass today <G