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Comments

Becky

It can't happen! I won't permit it!

unknown employee

We don't want to be bought by Amazon.

Amazon has a policy of not having any business units of any kind in California. This is so they can enjoy their sales-tax-free status here, in what is likely their largest-grossing state. If they were to buy Netflix, they'd move it out of state. We'd likely all be laid off (or, at best, forced to move). No thanks.

unknown customer

Find another job.

Actually, Amazon started A9, its search engine, in (Palo Alto) California in order to tap into the NorCal (engineering) talent pool -- there are only so many folks willing to move to Seattle.

Netflix is an obvious acqusition target, but $1B? That's crazy; that would value their members at an absurdly high per-subscriber value, considering Netflix's well published ~$35 customer acqusition cost (and the fact that all of its likely suitors have huge customer bases that they can market to for substantially less).

IMO, Netflix would be better served to partner (provided there's enough margin to share)...

Renee

Hey Mike, I tried emailing this to your email, mikek@hackingnetflix.com, but it got bounced back as an error (no such email) check out this story in the washington post on Netflix Braces for Amazon (http://www.washingtonpost.com/wp-dyn/articles/A36875-2004Oct15.html). (registration required)

Jim Biancolo

It's not too late to register "hackingamazon.com". :-)

badass

What would happen to the current Netflix stockholders stock if Amazon or Yahoo were to buy Netflix out? Would the stockholders just lose all their stock or would their stock all the sudden be worth more or what?

badass

"Blockbuster (BBI ): Maintains 1 STAR (sell)
Analyst: Amy Glynn, CFA
After a price cut by NetFlix, Blockbuster lowered its monthly DVD rental subscription by $2.50 to $17.49. The company seems optimistic about its ability to rapidly grow subscribers, but we are wary of heavy investment spending and its impact on profit. With customer loyalty we view as low, we think pricing is critical in attracting new customers. However, we do not believe a fast-growing, lower-margin customer base is positive for the industry. Despite Blockbuster including in-store rental coupons with online service, we think lower fees will ultimately impact in-store rental market."

I repeat the important part:
"Despite Blockbuster including in-store rental coupons with online service, we think lower fees will ultimately impact in-store rental market."

That is not good for Blockbuster at all and backs up what I have stated many times that we can't forget that with each online registration for any online rental company it will ultimatly hurt Blockbuster the worst of any rental company in the long run because they are the largest brick and morter rental company in the world. Netflix's business model is still the best and I believe after this scare we will see that Netflix does indeed have loyalty and with this new price they will have less risk than Blockbuster despite Blockbusters piles of cash. What say you?

Regarding those piles of cash - go check out Blockbuster's balance sheet.
They have a billion dollars in debt. They have to pay off around $70M in debt servicing this year alone.
The lower price has got to be hurting them. Plus, it's in huge conflict with their Movie Pass pricing.

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