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Fisher Capital Management World News: Netflix Sorry For The Price Hike But Causes Another Uproar
Fisher Capital Management World News: Netflix Sorry For The Price Hike But Causes Another Uproar
Netflix's CEO apologized for mishandling the recent price increased they announced which resulted in many customers to cancel their subscription. However, the apology was eclipsed by another ill-thought decision.
Birmnghan,
Alabama,
United States of America
(prbd.net)
13/10/2011
http://fishercapitalmanagement-worldnews.com/2011/10/fisher-capital-management-world-news-latest-update-netflix-sorry-for-the-price-hike-but-causes-another-uproar/
Netflix's CEO apologized for mishandling the recent price increased they announced which resulted in many customers to cancel their subscription. However, the apology was eclipsed by another ill-thought decision.
It was learned that the company is going to split into two different services -- one with the same name that will focus solely on streaming content while the other will be dedicated to mailing DVDs in their old way.
Qwikster is what their DVD service will now be called, something that the company wants to be recognized as a commitment to quick service but clearly, the public has ideas.
Netflix has already lost half of its market value on July when it revealed the plan to increase charges 60% more.
This move to rebrand the best-known part of Netflix's services baffled experts and made them question whether Reed Hastings, CEO, is losing his touch that made him an influential figure in the industry.
Others seem to see the logic behind the company's move: attempting to ascertain that they keep the business alive while customers are turning away from DVDs and look more into streaming movies over the Internet.
On September, Netflix has already lost 10% of its supposed 24 million users in the US for the DVD service.
The worst downturn in the company's history has come when Netflix anticipated it will have 600,000 less customers by the end of the month.
Those costs are one of the causes for Netflix to increase their prices. Hastings promised the additional money will be used to get even more content for their video streaming library.
On Hastings blog post, he informed the public that Netflix is going to make significant additions in the coming months.
Another change in the Netflix operation is the inclusion of video game in their rentals, something that Hastings had resisted strongly before. Although for investors this might not sound too good as video games are expensive and have a considerably shorter shelf life than movies.
However, the introduction of video games into their products could potentially win back disappointed subscribers.
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Many investors want to buy a stock if it's a hot IPO, if it's been featured in the news lately or if its price has shot up rapidly in the past few months. Because Fisher does business differently, we view these as warning signs, not buying signs.
About
At Fisher, we are committed to a long-term investment philosophy that emphasizes quality and diversification. We do business this way because years of experience have convinced us that it's one of the best ways to help you achieve your goals. Our research department uses this philosophy as a guideline when recommending individual stocks.
To learn more about the way we research the companies we recommend to our investors, take a look:
Many investors want to buy a stock if it's a hot IPO, if i
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