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February 23, 2005
Netflix takes on the competition
NY Times has an interesting article on Netflix. For anyone that has used this service, they know its awesome. Now that it has been proven to be a successful business model...Blockbuster, Wal-mart, and Amazon (shortly) or set to move in....hopefully Netflix will continue to challenge--the Captain is staying with them.
"In hindsight, what triggered Amazon and Blockbuster to compete with us is they could see how profitable we were and how fast we were growing," Mr. Hastings said. It has also meant that Mr. Hastings is constantly fending off analysts and commentators who are convinced that long-term survival requires that he sell the company to a large suitor to ward off the competition.Netflix has $175 million in cash and is carrying no debt, Mr. Hastings noted, and it has "no desire or need to be acquired." Mr. Rashtchy of Piper Jaffray is inclined to agree that Netflix can survive, but wondered if independence is the wisest route.
"They can survive on their own, and there's a good chance they will," Mr. Rashtchy said. "They are, after all, the single biggest player in this area, and singularly focused. It's just that they face a very bumpy road on their own."
Posted by Captain at February 23, 2005 09:01 AM
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