VGStockz: General Questions

[Ail]

sethnintendo said:

Ail said:

Netflix is down 7% so far today.

The stock raised too much and too fast in January and now it's giving back some of its gains...

Yea, must be people taking out for some profits.  Short term investors it seems like.  While short term investing is kind of interesting I would rather do a long term investment myself.    I haven't heard too much news but just did a Google search and saw Comcast is trying to challenge Netflix in streaming.  I don't see any trouble for Netflix just yet but they gotta keep on top of their game or they will end up like Blockbuster.

I woudn't bet long term on Netflix.

The reason is that their streaming catalog is still very poor and it's going to cost them a fortune to increase its size and in the end they won't be able to do that without increasing their prices.

Lets face it, dvd in the mail is not a business that is still growing and video on demand is the future.

And in that market Netflix faces a lot of tough competitors like Comcast, Time Warner, Amazon, itunes and so on...

While the Comcast catalog for example is nowhere as big as the Netflix one, it's quality is a lot better and they actually release the movies 28 days before Netflix...( and the money in rental is in recent releases...)

It is a lot more expensive to watch a movie on Comcast ( 4.99$ per movie) but you get them the day of the release in DVD/Blu Ray and in this day and age of instant gratification that is something a lot of people are ready to pay for...

I used to buy a tonn of DVDs/Blu Ray ( pretty much every movie I wanted to see I purchased them on release week as Best Buy gives a 20% discount that week).

Now I watch 95% of those movies in demand on Comcast and only buy the movies I know I will want to watch several times...

PS : My wife was very big on Netflix and now she gets all her videos from Amazon.( it used to be ITunes but she switched to Amazon and even closed her ITunes account).