What Channel Service? What Station Price?
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A blogger is always supposed to substantiate his claims of prescience with links. In this case I cannot comply, because it happened before I started blogging.
But my friends will remember my loud and repeated predictions back in April, when Netflix raised its prices, that "THIS WILL NOT STAND! The market will not tolerate this!"
Ahem:
Netflix is a great service. I've been a member and a fan for over two years (and, in the spirit of full disclosure, I made a sh*tload of money trading its stock -- I own none currently). But they got just plain cocky in raising their rates, and they got punished.
As I succinctly blogged previously: "I love competition."
Related Posts:
What Channel? What Station?
WhatChannel Country? What Station Price?
Will MP3's Be the Next Airline Industry?
Capitalists 'R' Us
But my friends will remember my loud and repeated predictions back in April, when Netflix raised its prices, that "THIS WILL NOT STAND! The market will not tolerate this!"
Ahem:
The future suddenly looks shaky for online DVD rental pioneer Netflix Inc.
...
Netflix is betting an upcoming 18 percent reduction in its monthly service fee will lure millions of new subscribers, extending its reign as king of online DVD rentals even though its profits are expected to disintegrate amid the stiffer competition.
Investors aren't nearly as confident. Netflix's stock has plunged 75 percent during the last nine months, reflecting fears that the 5-year-old company is destined to become another dot-com pipe dream.
Many industry analysts now view Netflix - with 2.2 million subscribers - as a prime takeover target, with Amazon and Yahoo Inc. shaping up as the most logical suitors.
...
The Amazon threat, though, prompted Netflix to backpedal and lower the monthly fee to $17.95 effective Nov. 1. The company also scrapped its plans to expand into the United Kingdom.
...
Dallas-based Blockbuster already is undercutting Netflix by lowering the monthly subscription fee for its online rental service from $19.99 to $17.49, effective Monday (Oct. 25). The recent repricing leaves discount king Wal-Mart in the unusual position of having the niche industry's highest subscription fee at $18.76 per month to check out up to three titles.
Netflix is a great service. I've been a member and a fan for over two years (and, in the spirit of full disclosure, I made a sh*tload of money trading its stock -- I own none currently). But they got just plain cocky in raising their rates, and they got punished.
As I succinctly blogged previously: "I love competition."
Related Posts:
What Channel? What Station?
What
Will MP3's Be the Next Airline Industry?
Capitalists 'R' Us
All Related Posts (on one page) | Some Related Posts:
Posted by KipEsquire on
25 October 2004
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