Tuesday, August 20, 2019

NETFLIX FACING NEW FINANCIAL STORMS

December 4, 2012 by · Leave a Comment 

Netflix shares, which have surged 40 percent over the past two months, thanks in large measure to Carl Icahn’s decision to buy just under 10 percent of its shares with the intention of pressing for a sale to a media conglomerate, fell 7 percent on Monday, largely due to a report saying that Redbox is planning to offer its Redbox Instant streaming service for $6.00 per month. Netflix charges $8.00. Then today (Tuesday), MarketWatch columnist Jeff Reeves listed a slew of reasons why would-be investors in the online video-rental service should “take a deep breath and press pause.” So, too did Miriam Gottfried in Monday’s Wall Street Journal. Her capper: while Netflix chief Reed Hastings is predicting that Netflix will eventually have $60-90 million streaming subscribers, it is virtually impossible for that prediction to come true. There are just 81 million broadband households in the U.S.