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elizabethv
elizabethv
12/19/2017 10:06:23 AM
User Rank
Platinum
Calculated Risk
I was less than thrilled when I got the notice that Netflix would be jacking up their price - again. I love having Netflix, rely on it even - but I cut the cord to save money. Not find myself with what is quickly becoming another cable company that likes to send me a new letter every few months and tell me my rates are going up. And realistically, Netflix will find a point where people are no longer willing to put up with a continually increasing fee. Sure, I like Stranger Things, but they're kidding themselves if they think I can't live without it. And I would imagine they know that. So I think it's just a very calculated risk. But even a calculated risk, is still a risk. 

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Shaunn
Shaunn
12/19/2017 11:33:31 AM
User Rank
Platinum
Re: Calculated Risk
And risk does not have to yield reward. I think Netflix may end up trying to cut it too close. It's risky already, but it might get too risky to pay off before it does.

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afwriter
afwriter
12/19/2017 11:40:22 AM
User Rank
Platinum
Re: Calculated Risk
<Sure I like Stranger Things.>

Netflix is going to shoot themselves in the foot if they aren't careful. They also release their more popular shows, like Stranger Things, on DVD. Why would someone pay $20 or $30 a month for a couple shows they enjoy that they can wait and buy for that price a few months later?

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afwriter
afwriter
12/19/2017 11:43:11 AM
User Rank
Platinum
Betting the Farm
I have been questioning Netflix's strategy for a few years now. I just don't see how the numbers add up without them jacking up their prices which will eventually drive away business and make their debt unsustainable. They are putting themselves in a precarious position where if they move even an inch in the wrong direction of increasing prices or decreasing content they will tailspin. 

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elizabethv
elizabethv
12/20/2017 8:24:27 AM
User Rank
Platinum
Re: Calculated Risk
@Shaunn - You're right, it doesn't have to yield a reward. But just like it doesn't have to, it also might yield a reward. I'm told this is why it's acceptable that CEO's make all the money they do, taking a risk supposedly is supposed to pay off more than anything else a human can do. Clearly Netflix is taking a risk, and if one were to look at with everything else in this country right now, it would stand to reason they likely could walk away with a big reward. At the very least they are being rewarded plenty at the moment. 

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elizabethv
elizabethv
12/20/2017 8:35:23 AM
User Rank
Platinum
Re: Calculated Risk
@afwriter - If anything, this could be proof that their risk is failing. A last ditch attempt at making enough profit to continue on. But you're right, releasing it to DVD is maybe not the greatest strategy. Though maybe if a pereson buys and enjoys a Stranger Things DVD, and an Orange is the New Black, DVD, they might decide there could be other things worth checking out on Netflix, and that maybe paying the now $12 a month is worth it, instead of continuing to pour money into DVD's you'll only watch once.  The number of people this might be true for, is probably small. But it's possible.

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Shaunn
Shaunn
12/20/2017 7:31:00 PM
User Rank
Platinum
Re: Calculated Risk
You got that right. I just hope Netflix doesn't go down as a rich man trying to live beyond his means.

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afwriter
afwriter
12/23/2017 2:15:01 PM
User Rank
Platinum
Re: Calculated Risk
@Shaunn I share your worry. I also think that putting themselves in a vulnerable position makes it easier for someone else to come in and edge them out. 

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freehe
freehe
12/24/2017 10:13:34 PM
User Rank
Platinum
Re: Calculated Risk
@elizabethtv, I am able to cut the cord. I was considering getting Netflix but may reconsider. Unfortunately all telco companies and content providers will eventually raise their prices unless you are Comcast and raise your prices every year.

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freehe
freehe
12/24/2017 10:15:41 PM
User Rank
Platinum
Netflix
These numbers mean that Netflix is actually losing money. No matter how good content may be if no one is watching it or watching it enough to generate revenue it is a failure.

I thought Netflix was making money. Selling money to pay off debt is never a good sign. They need to restructure the company to reduce further losses.

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