Donate Today! Help us help others.

Lynch Coaching


Monday, October 24, 2011

Netflix stock plummets as more subscribers leave


People are leaving Netflix, most recently when saved "favorites" and even selections still shown came up blank, as Disney and others jump ship for Blockbuster, Amazon or other services.

From the LA Times Company Store blog (click here)

The bad news keeps coming for Netflix.

Shares in the subscription video company plunged more than 20% in after-hours trading Monday after it reported that it lost more U.S. subscribers than expected in the quarter ended Sept. 30 and would gain very few by the end of the year.

A total of 810,000 domestic customers canceled their Netflix subscriptions in the last quarter after a surprise price hike and a much derided, ultimately aborted move to separate its DVD shipping business from its streaming service under a new brand called Qwikster.

The Los Gatos, Calif., company had told investors last month that it expected to lose 600,000 subscribers. As of Sept. 30, Netflix's total number of U.S. customers was 23.79 million, down from 24.59 million three months earlier.

Perhaps more disturbing to investors, however, is that Netflix said its growth would continue to stall in the current quarter. Breaking out its streaming and DVD subscribers for the first time, the company predicted that by Dec. 31 it would have between 20 million and 21.5 million streaming customers, flat or down from its 21.45 million as of Sept. 30.

DVD subscribers, meanwhile, are expected to fall to between 10.3 million and 11.3 million, from 13.93 million on Sept. 30. Some people utilize both services and while Netflix did not predict a total U.S. number, the company is forecasting that it would be "slightly up" by year end.

In a letter to shareholders, Chief Executive Reed Hastings and Chief Financial Officer David Wells were straightforward about Netflix's recent missteps:

We greatly upset many domestic Netflix members with our significant DVD-related pricing changes, and to a lesser degree, with the proposed-and-now-canceled rebranding of our DVD service. In doing so, we've hurt our hard-earned reputation and stalled our domestic growth. But our long-term streaming opportunity is as compelling as ever and we are moving forward as quickly as we can to repair our reputation and return to growth.

In July, Hastings and Wells told investors to expect the company to retur
n to its growth pattern in the current quarter and that it could for the first time generate $1 billion in revenue. Instead, the high end of its estimates call for $875 million in revenue this quarter.

News was better abroad for Netflix, where it added more than 500,000 customers in Canada and Latin America, which launched in September, bringing its foreign total to 1.51 million. In early 2012, the company will expand into Britain and Ireland.

Third-quarter revenue was up an impressive 49% to $822 million, while net income jumped 63% to $62 million.

But investors had expected much better, sending the stock below $100 for the first time since July of 2010. In July of this year, it reached a high of $298.73. Netflix stock closed at $118.84, up 2%, or $1.80, before financial results were released.

Netflix announces expansion into Britain, Ireland
Netflix deal makes CW pay off for CBS and Warner Bros.
Netflix dumps Qwikster plan but price increase remains in place
-- Ben Fritz
Photo credit: Associated Press

CSN vs. UNLV this weekend

Women’s Softball Tournament This Weekend at UNLV

The CSN Coyotes Softball Team will play UNLV and Cypress College this weekend at Eller Media Stadium at UNLV.

                Friday October 28th               Time/Opponent
                                                                11am – Cypress College
                                                                3 pm – UNLV

                Saturday October 29th    Time/Opponent
                                                                12pm – Cypress College
                                                                4 pm -- UNLV
‎"Reward yourself for having the guts to go out there and try!" You Are More Than Enough!

RON PAUL Campaign Video

The future if TV could be found in an Apple

Company Town

Did Marketing Kill "The Three Musketeers", Johnny Depp remains in the spotlight, Horror wins pre-Halloween weekend

Abnormal activity. Paramount's "Paranormal Activity 3" took in $54 million at the box office this past weekend, easily blowing away even the most optimistic estimates. No surprise that "The Three Musketeers" and "Johnny English Reborn" were bombs. Several days ago, "Three Musketeers" star Milla Jovovich criticized the promotional push behind the movie. I saw plenty of previews and ads for it and that's what kept me away from the theater. Of course, her husband directed the movie so it's not like she's unbiased here. Box office coverage from the Los Angeles Times, Variety, and Movie City News.

What costs the most. Advertising Age has released its annual chart of prices for commercials on prime-time TV. Lots of interesting information here. Fox for example, sold the Wednesday edition of "The X Factor" at an average of more than $300,000 per 30-second spot. No way is the show delivering the ratings the network promised advertisers. Most surprising observation to me: I could afford a spot on NBC on Saturday night!

Protecting the franchise? Johnny Depp is out promoting "The Rum Diary," but don't look to catch him on any ABC stations. According to one ABC station, KHOU-TV Houston, Depp is not allowed to do any interviews with ABC stations. ABC is owned by Walt Disney Co., which makes the "Pirates of the Caribbean" franchise. Without knowing the specifics, perhaps this is a misguided attempt by Disney to avoid having its franchise hurt by an association with Depp's more out-there projects. I assume Depp's contract with Disney allows it to do this, because I'm not sure how the company could tell TV stations it doesn't own what celebrities they can and can't interview. More from the KHOU website.

Low-hanging fruit. There are certain go-to stories reporters can always count on and the decline of NBC has been on the top of the list for more than five years. Even new owner Comcast Corp. hasn't been able to change the fortunes of the Peacock network, whose ratings have tumbled again this season. In fairness, new entertainment chief Bob Greenblatt and his team have little to do with the shows currently failing. Still, anyone who thinks years of decline can be turned around in one season doesn't know much about the broadcast television business. More from the Wall Street Journal.

They have good schools there. NBC Sports is moving out of New York and heading to Connecticut. The move is not to be closer to ESPN, but for tax breaks. However, the sales staff will stay at NBC's midtown headquarters. The building NBC Sports is moving into used to be a Clairol hair dye factory, which could come in handy for the on-air talent. More on the relocation from Sports Business Journal.

When do I audition? It's a new week so it must be time for a new co-host on CBS's "The Talk," the CBS daytime show that goes through talent the way the Redskins go through quarterbacks. Now on board, according to Deadline Hollywood, is Aisha Taylor. Hope she negotiated a good severance package.

Inside the Los Angeles Times: While there was some bickering between News Corp. and shareholders at Friday's annual meeting, in the end little changed at the company. Kal Penn went from Hollywood to the White House and back.

— Joe Flint

Follow me on Twitter. Deep down inside you want me on that wall.

College Transfer Fairs, all three campus locations, Henderson on Thursday