NetFlix's Horror Movie
NetFlix's Scary Movie
Company profits nearly triple, but Wall Street is afraid of what might happen next.
By Phillip Swann
Washington, D.C. (July 25, 2006) -- NetFlix, the online DVD rental service, said yesterday that its second quarter profits nearly tripled.
However, the company's stock plunged more than 20 percent due to concerns about increased competition.
NetFlix said it ended June with 5.17 million subscribers, an addition of 303,000 customers during the spring. Company revenue jumped 46 percent from last year's second quarter, which was slightly below Wall Street analyst estimates.
But the analysts are more concerned about whether NetFlix can compete with emerging technologies such as Cable On Demand and online services that enable you to instantly download movies on your PC and TV.
NetFlix currently sends subscribers DVDs in the mail after they are ordered online; they usually arrive within 24-48 hours.
The company also must contend with Blockbuster and other retail video stores.
NetFlix acknowledges that it has had to boost spending to attract new customers and keep current ones.
After NetFlix released its financial results yesterday, company shares rose slightly, but then fell 20.4 percent in extended trading.
NetFlix says it can compete with both old and new video services. A company vice president said recently at an industry conference that it's exploring the launch of a set-top that can instantly download movies via a high-speed Internet connection.
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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.
And click TVPredictions.com to read more news and features on TV technology.
Company profits nearly triple, but Wall Street is afraid of what might happen next.
By Phillip Swann
Washington, D.C. (July 25, 2006) -- NetFlix, the online DVD rental service, said yesterday that its second quarter profits nearly tripled.
However, the company's stock plunged more than 20 percent due to concerns about increased competition.
NetFlix said it ended June with 5.17 million subscribers, an addition of 303,000 customers during the spring. Company revenue jumped 46 percent from last year's second quarter, which was slightly below Wall Street analyst estimates.
But the analysts are more concerned about whether NetFlix can compete with emerging technologies such as Cable On Demand and online services that enable you to instantly download movies on your PC and TV.
NetFlix currently sends subscribers DVDs in the mail after they are ordered online; they usually arrive within 24-48 hours.
The company also must contend with Blockbuster and other retail video stores.
NetFlix acknowledges that it has had to boost spending to attract new customers and keep current ones.
After NetFlix released its financial results yesterday, company shares rose slightly, but then fell 20.4 percent in extended trading.
NetFlix says it can compete with both old and new video services. A company vice president said recently at an industry conference that it's exploring the launch of a set-top that can instantly download movies via a high-speed Internet connection.
--------------------------------------------------------------------------------
Swanni Speaks!
Hire Swanni to speak to your company meeting or industry conference.
--------------------------------------------------------------------------------
Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.
And click TVPredictions.com to read more news and features on TV technology.
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