Wednesday July 25, 2007 3:58 pm
Netflix Stock Plummets
If you are a Netflix devotee, you may have noticed that the site was down for over 12 hours this week, but what you may not be aware of is the fact that their stock price hit the lowest it has in over two years. Lowering monthly fees by $1.00 and thereby losing profits is one of the company’s attempts to compete with the mega-giant Blockbuster. Yesterday their stock dropped to $15.62 then rebounded to $16.10 (a loss of 6.8%) as an indication of stockholders’ distress. Statistics also indicate that last month they had a decrease of 55,000 subscribers since April. They may lose even more profit as they invest in new tech to allow online movies that can be viewed on TV via high-speed Internet connections.
The company has had its share of problems since Blockbuster offered the option to swap DVDs at their stores instead of waiting for the mail. We love Netflix for its originality and are not thrilled with the fact that they may be knocked down because of that glorious concept known as competition. We have watched our neighbor video stores crumble because of Blockbuster’s large scale takeover efforts and hope that the beleaguered rival can take a bite back and retain its standing.
Read More | MSNBC