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Listen Up, Netflix! Even Wall Street Thinks You Screwed Up!

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wall street says netflix screwed up

Might be time to admit that you were wrong, Netflix!

Earlier this week, we were NOT pleased to learn that Netflix decided to split their DVD-by-mail and video streaming services into two separate entities.

As is to be expected, there was LOTS of backlash from critics and customers…and now Wall Street is telling Netflix that they messed up!

Here's what Pacific Crest Securities analyst Andy Hargreaves had to say about Netflix's big business mistake:

"Netflix's recent price changes, followed by the separation and rebranding of the DVD business, have increased (subscriber turnover) and damaged the brand value. We expect near-term uncertainty to persist until the direction of content negotiations and competitive offerings becomes clearer."

More from Janney Capital Markets analyst Tony Wible:

"We believe the loss of $9 billion in market value rests with the CEO and believe one of the only ways (Netflix) can reverse momentum is to change management and reverse much of what it has already committed to. Frankly, we do not believe (Netflix) is likely to take these steps. The management has not shown to care about investors or its customers."

Bummer. Here's more from Morgan Keegan analyst Justin T. Patterson:

"We see little reason to create a new brand unless Netflix was intending to ultimately spin-out the Qwikster business. The friction of using both services could cause more to downgrade or even cancel their service."

And because we're so disgusted with Netflix, we've included even more criticism from Wall Street analysts AFTER THE JUMP!

Do U think that Netflix screwed up? Do U think there's any chance they'll give their customers what they want???

Here's Merriman Capital analyst Eric Wold on Netflix's screw-up:

"(For investors), we continue to recommend staying on the sidelines until the near-term uncertainties lessen. Our concerns…remain in place and we believe (subscribers) will continue to seek out a less-expensive option in general and especially within an economic environment where fixed costs are being cut by household budgets."

More from Caris & Co. analyst David Miller:

"We also have a problem with (Netflix's) decision to enter the videogame rental business…the beauty of filmed entertainment, as we see it, is that it is a long-lived asset exploitable in multiple windows. Audiences of the series Seinfeld, for example, can still find virtually the same entertainment value in watching that show today versus its prime almost 20 years ago. The same cannot be said for video games, which find obsolescence very quickly."

Wake up, Netflix! Seriously…

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14 comments to “Listen Up, Netflix! Even Wall Street Thinks You Screwed Up!”



  1. 1

    Perez you have no idea what you're talking about. Anybody can copy and paste a critics response.



  2. 2

    OMG!! THEY ROSE PRICES BECAUSE THE MOVIE COMPANIES WANTED MORE MONEY! THEY MADE THIS PLAN TO STAY IN BUSINESS. THEY COUDLN'T AFFORD TO KEEP BOTH OF THE STREAMING AND MAIL SYSTEMS THE SAME PRICE! LEARN YOUR FACTS! THEY ARE TRYING TO CUT PRICES AS MUCH AS POSSIBLE!

    WHY AREN'T PEOPLE MAD AT THE GREEDY MOVIE COMPANIES!??? It's ok, they'll learn their lesson… people are going to start boot legging again and the companies will crawl back to Netflix begging to get some profit back. Everyone always thinks they can do it better… but I don't want to have to go to different movie providers to watch their movies. Especially since they will most likely be charging more than Netflix.



  3. 3

    Whatever. If they don't want to listen to the people paying them their money then they deserve to fail as business. Just wait until redbox can get to more new releases, netflix will be dust.



  4. 4

    I couldn't care less… I was able to cut out cable, saving 50 bucks, for Netflix, and it's amazing. I don't care if they want me to spend a little more money. It's still less than cable and gives me better quality stuff. I don't have to use the dvd service if I don't want to. It's all fine by me.



  5. 5

    I plan on cancelling my netflix, they don't even have any good movies streaming anyway. I chose them instead of cable to save money, but since the CEO is acting like an arrogant prick I will no longer support a company that doesn't give a crap about their customers.

  6. Mtl23 says – reply to this


    6

    I just cancelled and went to Blockbuster online, I get movies, games, blu ray or dvd for 16.99 a month for 2 at a time. Netflix is the leader in the market and have literally forced thousands of video stores out of business. I doubt they need to raise prices, that wasn't even what made me cancel though it was them splitting into two different websites, it is less convenient now, and if I have to go to a new website anyway, Blockbuster is a better value and option as far as the through the mail service is concerned.



  7. 7

    For someone who is splitting their website into mini-blogs, I find this post very interesting, Perez Hilton. Perchance it will give you pause for thought.



  8. 8

    Re: Mtl23 – You realize you're paying more for your plan than you would have at Netflix and now you don't even have streaming, right?



  9. 9

    Re: poodlewithamohawk – Boom! Could not have said it better myself.



  10. 10

    Okay… with the whole "videogame" part of this comment… If videogame software was so obsolete they wouldn't be reviving so many old games on modern systems. (Resident evil 4, Ocarina of time, ico, shadow of the colossus, metal gear solid…so many more) There ARE games that people still play again and again or they would be re-releasing them on the virtual console, livearcade and PSnetwork. Videogames makes alot more money than movies in this day and age, they would be dumb not to try to dip their pinky in it.

  11. frrf says – reply to this


    11

    Considering how much netflix sucks? I don't really care. I tried it when it first came out and got sick of all the scratched and broken DVDs and I tried it again recently and hated their streaming service.



  12. 12

    They are being a smart business. It is sensible for them to realize that they have two different bases. They have the younger generation who uses more of their streaming services and the older generation who uses the dvd by mail service. While there is overlap, they looked at their books and realized it wasn't as much as the outside world thought. Therefore they split the company so they could improve both separately.



  13. 13

    I tried Netflix and it sucked.



  14. 14

    WTFFlix? Right on, Mario!