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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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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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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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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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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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freehe
freehe
12/24/2017 10:17:11 PM
User Rank
Platinum
Re: Calculated Risk
@afwriter. Good point. I agree. It is a waste of money, time and resources to make a DVD for a few shows. The model that works and continues to work is to create DVDs for a season of a show. Not sure why they wanted to deviate from what is working.

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afwriter
afwriter
12/24/2017 11:20:54 PM
User Rank
Platinum
Re: Calculated Risk
And think of the fact that they are doing the opposite of every movie company. Studios would much rather sell a digital copy than a DVD nowadays. 

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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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faryl
faryl
12/31/2017 8:58:31 PM
User Rank
Platinum
Re: Calculated Risk
Iím torn because as customer, I donít want to see their prices go up. At the same time, I appreciate the opportunities it provides to content creators who may not have been able to get shows/movies produced by the larger studios. In a way, itís become what the independent film industry used to be. (Though I wonder if, as more & more people become comfortable with technology that allows streaming from browsers & other apps to their TVs, that middle man may become less important. Especially combined with crowdfunding things)

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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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freehe
freehe
12/24/2017 10:19:27 PM
User Rank
Platinum
Re: Betting the Farm
@afwriter. Yes they are. They have moved away from their company mission and initial purpose for starting their business. When that happens executive lose sight of how they become a large company. They need to go back to the beginning and reflect on their original core values before they lose everything.

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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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afwriter
afwriter
12/24/2017 11:23:20 PM
User Rank
Platinum
Re: Netflix
The problem is that subscriptions are such a static way to make money. Netflix needs to find other ways to monitize instead of hoping that they can continue to gain subscriptions. 

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elizabethv
elizabethv
12/26/2017 8:23:38 AM
User Rank
Platinum
Re: Netflix
@afwriter - You're exactly right about that. (Though it is how Costco makes the money they do. And Costco's subscription is substantially cheaper.) I think I can see ads coming to a Netflix near you. They may be at a point of desperation to do so. 

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afwriter
afwriter
12/29/2017 1:29:28 PM
User Rank
Platinum
Re: Netflix
I think ads would end up hurting them more than it helps. I know they do it a bit in a small scale way now but my personal opinion is that Netflix needs partnerships and much stronger product placement in their original shows and movies. 

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Michelle
Michelle
12/29/2017 8:20:18 PM
User Rank
Platinum
Re: Netflix
Agreed. I think ads wouldn't be a good choice at all. Part of the charm of Netflix is the lack of ads. It's wonderful to watch things without advertisements!

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dlr5288
dlr5288
12/30/2017 9:30:53 PM
User Rank
Platinum
Re: Netflix
I completely agree. It would be a huge mistake. Iím not sure how many clients they would lose. However, I donít see new people signing up because of the advertisements. YouTube is annoying enough with the constant ads..

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Michelle
Michelle
12/31/2017 12:25:27 PM
User Rank
Platinum
Re: Netflix
Introducing ads would be a good way to lose existing subscribers. I suspect new subscribers would be stuck with ads, however. It would be all wrong no matter what.

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dlr5288
dlr5288
12/31/2017 2:23:52 PM
User Rank
Platinum
Re: Netflix
I agree! I know for me, thatís one of the things that I love about Netflix and what sets them apart from others.

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Joe Stanganelli
Joe Stanganelli
12/31/2017 7:01:11 PM
User Rank
Author
Re: Netflix
@Michelle: Hear, hear.  If Netflix goes the Hulu route then that will be a big chink in its armor. At that point, it becomes no better than a cable company.

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Michelle
Michelle
1/1/2018 5:09:56 PM
User Rank
Platinum
Re: Netflix
Indeed. We pay for commercial-free Hulu and it's nice. Commercials bundled with paid services are no better than cable. You still have to watch commercials when you have cable. I wonder how Netflex could compete if they had commercials. It seems like a tough sell after all this time without...

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batye
batye
1/1/2018 5:40:59 PM
User Rank
Platinum
Re: Netflix
@Michelle this days I stop watching tv as i could not longer able to to stand constant commercial and prefer reading books... as in my mind it easy this way... 

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mpouraryan
mpouraryan
1/1/2018 8:45:21 PM
User Rank
Platinum
Re: Netflix
Happy 2018 to all here in TT.   As I hope all had a fab time and got some downtime--for the record--I was the only one that apparently said "Netflix is toast".   There are a few things that led me to it--for starters, I view them as being in Amazon's Crosshairs--and this truly hit home when Amazon "live stremed" the Rose Parade for this year (I am not sure the first time).   Hulu is also another one to be aware of--especially with the pending Disney/Fox Marriage that I am sure we all will have plenty to write about!!

It is going to be an interesting year no doubt!!!



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batye
batye
1/2/2018 12:08:29 AM
User Rank
Platinum
Re: Netflix
@mpouraryan Happy New 2018, the way I see it it gonna be ery interesting year - Amazon and Google everywhere :) 

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mpouraryan
mpouraryan
1/2/2018 3:49:31 AM
User Rank
Platinum
Re: Netflix
Working away as I "drop by briefly" & as I saw this:
 

There is a 40% chance #Apple will acquire #Netflix, according to Citi http://uk.businessinsider.com/apple-potential-merger-acquisition-candidates-aapl-2017-12 ... $AAPL $NFLX

 

Now that would be a game changer--right?

 

 



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batye
batye
1/2/2018 3:56:24 AM
User Rank
Platinum
Re: Netflix
@mpouraryan I think it could happens as Apple try to get bigger piece of the market pie... one way or other... 

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mpouraryan
mpouraryan
1/2/2018 10:56:42 PM
User Rank
Platinum
Re: Netflix
Thank you for sharing your thoughts.    The question that all must think about is whether "Bigger" necessarily means "better".    What The NYTimes Farhad Mahjoo referred to as the Frightful Five are becoming the fearful Five--and we seem to be lost out in it all

 

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batye
batye
1/4/2018 2:21:28 AM
User Rank
Platinum
Re: Netflix
@mpouraryan  thank you in my books bigger not always better as quality may get lost in the process - but it just the way I see thing... 

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mpouraryan
mpouraryan
1/4/2018 1:31:52 PM
User Rank
Platinum
Re: Netflix
THanks for the thoughts--there is always something about a "physical book" that somehow will endure in this changing & transfomational time we live in no doubt.  The question is whether our grandkids wil actually know what a book is :)

 

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batye
batye
1/4/2018 8:17:04 PM
User Rank
Platinum
Re: Netflix
@mpouraryan I think they will do as one of my friends have old book from 19th century - I think  in his house  old Biblia Hebraica as it high values he build room inside room for it safe with security system motion cameras with security pc/A.I. to monitor it  and  humidor area and special lights... he did show to me and with right magnification and ligh we did try to read few things in it... :)  I think books will be here to stay... for our grandkids... 

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mpouraryan
mpouraryan
1/2/2018 10:59:30 PM
User Rank
Platinum
Re: Netflix
Thanks again for taking the time to share your thoughts--you forget another one of what I will hereby deem the "Fearful Five"--Facebook--as there was a major commentary about how some of the Virtual MEdia Players (and we at the Daily Outsider have to deal with it as well in a major way) on dealing with the dual monopoly of Google (Alphabet) along with Facebook.

 

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batye
batye
1/4/2018 2:23:28 AM
User Rank
Platinum
Re: Netflix
@mpouraryan good point I think in 2018 we gonna see big brands wars... at the same time FB more and more becoming bigger brand player - same as Google, Ebay, Amazon... 

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mpouraryan
mpouraryan
1/4/2018 1:33:04 PM
User Rank
Platinum
Re: Netflix
It will be fascinating no doubt--but there will be more scepticism as exemplified by the stories that came out about how the "Platforms' were manipulated.    

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batye
batye
1/4/2018 8:27:09 PM
User Rank
Platinum
Re: Netflix
@mpouraryan yes, this days anything and everything could be manipulated one way or other... online or off-line it our life this day... I learn before accept and trust it have to be verifyed... 

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mpouraryan
mpouraryan
1/7/2018 2:39:45 AM
User Rank
Platinum
Re: Netflix
Remember the old admonition, "Cavaet Emptor...//Buyer be Aware..."  We have to be smart and ask the right questions--easier said than done--but we have no choice--do we

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batye
batye
1/7/2018 9:02:36 PM
User Rank
Platinum
Re: Netflix
@mpouraryan could not agree more you are soo right.... as to ask right question is a must.... 

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mpouraryan
mpouraryan
1/7/2018 10:07:08 PM
User Rank
Platinum
Re: Netflix
If only all agreed/engaged and understood it for the sake of all!!

Onward to the New Week

:)

 

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Joe Stanganelli
Joe Stanganelli
12/31/2017 7:02:22 PM
User Rank
Author
Re: Netflix
@afwriter: To be fair, cable companies' entire traditional business model, pretty much, is making money on subscriptions. Content subscriptions are a sustainable way of doing business. You just have to have content that's worth it. That's why Netflix is ponying up so much capital here.

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Joe Stanganelli
Joe Stanganelli
12/31/2017 7:00:16 PM
User Rank
Author
"Tech debt"
I voted the unqualified Yes answer because Twitter, of all companies, is still in business. If Twitter can still be around after all this time, Netflix -- which is actually a decent company with a good business model -- is fine taking on all this debt.

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JohnBarnes
JohnBarnes
12/31/2017 8:38:39 PM
User Rank
Platinum
Calculated risk
It's the conservative right answer evaluating  any business decision where the dollars are big but so is the potential reward (unless someone involved appears to be so goofy that it's an uncalculated risk). We don't really know how much room they have to grow into or whether they'll continue to be as attractive to new customers as they have been to the recent ones. But the industry itself is so huge that gaining even a modest slice of it is likely to keep them in business. So there's a good contender in a not-entirely-good situation; that's virtually the definition of calculated risk.

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mhhf1ve
mhhf1ve
1/11/2018 1:29:20 PM
User Rank
Platinum
Media giants...
Netflix is on its way to becoming the next Disney if it plays its cards right. If it has a few more big hits that can extend into global culture like Mickey Mouse has, the Netflix will see a few billion spent now as a rewarding investment. However, it's a risky game. Apple and others are also trying it -- with uncertain results, too. 

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afwriter
afwriter
1/12/2018 1:23:49 AM
User Rank
Platinum
Re: Media giants...
The problem there is that Apple has other revenue streams to fall back on. Netflix is putting all their money on one horse so they are in a win or lose scenario.

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dlr5288
dlr5288
1/31/2018 4:51:53 PM
User Rank
Platinum
Re: Media giants...
I completely agree. Iím a huge Netflix fan. And it does come out with such great content. Itíll be exciting to see what else they come up with.

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mhhf1ve
mhhf1ve
2/1/2018 1:39:08 PM
User Rank
Platinum
Re: Media giants...
I'm wondering why Netflix hasn't invested in more original kids content that could become a more direct competitor to Disney. I think Disney will eventually pull nearly all of its content from Netflix so that it can control it on its own OTT platform. Not sure what will happen to the Marvel spinoffs.... 

But maybe someday we'll see Netflix theme parks? :P

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dlr5288
dlr5288
2/27/2018 4:50:26 PM
User Rank
Platinum
Re: Media giants...
What a great idea! As it is now, I know the Disney channel on cable is dying. I think if Netflix did have more kids options they would certainly be the go to site.

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