In a sense Netflix also pirates. Reading their Annual Report for 2016, Netflix as it turns out is still a fledgeling Nasdaq start up with many holes.
“ http://lemma-coaching.hu/docs/ajanlott_irodalom/Life Coaching for Dummies - Jeni Purdie.pdf Intellectual property claims against us could be costly and result in the loss of significant rights related to, among other things, our Web site, streaming technology, our recommendation and merchandising technology, title selection processes and marketing activities.” (Netflix 2016 Annual Report)
buy provigil 200 mg “Privacy concerns could limit our ability to collect and leverage our membership data and disclosure of membership data could adversely impact our business and reputation.” incontri como donne (Netflix 2016 Annual Report)
The FTC sent a letter to Netflix counsel that their member viewing can be traced back to identity. “It is possible to re-identify Netflix members from a contest the company made public.” (https://www.ftc.gov/sites/default/files/documents/closing_letters/netflix-inc./100312netflixletter.pdf). Cornell University can re-identify Netflix users too (https://www.cs.cornell.edu/~shmat/netflix-faq.html)
Other intelligence about Netflix’s possible “boom, bust and echo”.
1. has 93 million streaming members worldwide
2. 125 million hours of TV shows and movies per day or 1.3 hr a day.
3. growth strategy is to maintain the same profit margin while finding new members
4. netflix competitive advantage is award winning movies. it takes advantage of this in markets where TV service is not as ‘Westernized/Americanized’, because it is cheaper than American cable TV but better than piracy.
5. 3,200 full-time permanent employees + temporary workers.
6. internet infrastructure is a big obstacle to Netflix
7. profit repatriation is also a big obstacle in foreign countries
8. consumer privacy is as big an obstacle as piracy to Netflix
Finally, in 2011 “Netflix Lost 800,000 Members With Price Rise and Qwikster Plan” and the following year the company’s ‘Return on equity’ dipped to a low of 2.5 from a high of 66 before the membership lost. ‘Earnings per share’ was an all time high of $0.61 when the company IPO but is at historical average levels of $0.44 now so despite sitting on a pile of cash from the IPO it has not had a winning marketing campaign for growth in the last 5 years. I value the stock at $5.xx personally.