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ScottZ

37.8% is a great margin. Shouldn't have any price increases coming for a while.

Jeff Chambliss

Subscribers up 35%, revenue up 25%, so less revenue per account. I don't think this means price increases yet, but this will just reinforce their thinking they did the right thing with their deals with the studios (28 day waits).
I can see at some point NetFlix wanting to get into the Pay Per View business too.

Justin Y

The funny part re: Netflix threat to the cable companies is that Watch-It-Now probably encourages a LOT of people to purchase the most expensive (fastest) broadband connection the cable companies have. Netflix probably adds revenues for the cable companies.

Leegaupp

I like the Netflix M.O., price, etc. What Xbox Live is toying with ($10 extra a month) and what Hulu is toying with ($10 a month) will keep me with Netflix and not the others. With Netflix I get no commercials, and being the patient person I am it works.

Tim

How about taking some of that income, and maybe even reducing fee's? Maybe a little bit too. Say 10cents, maybe 25 cents? A little goes a long way. Hoarding money in a greedy fashion will be a turn off to some.

Frank

What is it about Netflix that turns people communist? There making better profits while keeping the price the same. I really think I am getting great value. I am not a stockholder, but a business doesn't reduce price JUST because there is profit growth. I don't see any other company ever in history being asked to do it. Why Netflix?

I think it is the all you can eat aspect of membership, that makes them always look towards what other people are getting and wanting to make sure you get your piece.

The only time a company reduces costs, is because of market conditions that makes them believe they will make more that way.

Frank

Have you ever asked Microsoft, Apple, Coke or McDonalds to lower prices because they had a good year? Some of those companies have huge margins!

Frank

From Wikipedia
"In some industries, like clothing for example, profit margins are expected to be near the 40% mark, as the goods need to be bought from suppliers at a certain rate before they are resold. In other industries such as software development, since the cost of duplication is negligible, the gross profit margin can be higher than 80% in many cases"

37% is not some outlandish profit.

Hank

For those who want their piece, Netflix will happily share their profits with you -- NASDAQ: NFLX

Ricky

I just signed up for Blockbuster online on tuesday. I'm paying the same as netflix for 2 blu-rays at a time ($16.99). On Thursday I received Avatar and The Hurt Locker (Long wait for months on Netflix). 1 day shipping for me in LA. Very happy so far. I also get 5 free exchanges per month in store. I love being able to go to the store on a weekend and exchange my movies for new ones instead of having to wait 2 to 3 days for the next one. If word gets out that Blockbuster online has stepped their game up, I see netflix suffering from it.

Blockbuster appears to be just as good. We'll see if their service holds up, but the 28 day thing really turned me off to Netflix. Plus, they're charging the same price but their service has been limited. That sucks.

BTW, Avatar is by far the most amazing Blu-Ray disc to EVER be released....so far.

I was streaming in HD on my xbox but the selection is meh.

Looks like I'm done with Netflix for now.

Nutflix

Netflix is great for the price. But I do love new releases that I didnt see in the theatre, and so I still rent at a local store. I am down to 1 at a time only because of the streaming aspect, and I cant see myself upgrading for a while because everything I want to see isnt out on netflix for over a month. But summer is coming and that means that I will be outdoors more anyway.

PatB

NetFlix is facing economic peril. It may survive, or maybe not.

NetFlix is a DVD company and DVD sales and rental are just about to crash. DVDs crashed in South Korea already. We're almost certainly next.

Sony stopped selling DVDs in South Korea two years ago when high speed Internet connections reached nearly 100%. NetFlix knows this and is responding with their successful Watch Instantly Video On Demand (VOD)service. Unfortunately for NetFlix there is a good chance that VOD will not be answer. It wasn't in South Korea.

In South Korea people download movies from the "cloud" not from a few well defined VOD vendors.

tiffany1837co

I think it is the all you can eat aspect of membership, that makes them always look towards what other people are getting and wanting to make sure you get your piece.

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