Wednesday, February 23, 2005

The New York Times > Business > Business Special > Innovators: Does the Kid Stay in the Picture?

The New York Times > Business > Business Special > Innovators: Does the Kid Stay in the Picture?: "By some measures, Netflix has never been more successful. Safa Rashtchy, an analyst with Piper Jaffray, had predicted the company would swell to 2.2 million customers by the end of 2004, but the subscriber base crossed 2.6 million members, growing at an even faster pace, 76 percent, than the impressive 74 percent growth rate the company sustained through 2003. It also exceeded fourth-quarter revenue targets set by Mr. Rashtchy and other analysts.
Yet shares in Netflix are down 68 percent from their January 2004 high. The low point came in mid-October, when the company reported its quarterly earnings. Mr. Hastings announced that because of the anticipated entrance of Amazon in the market, he was slashing the basic subscription fee to $17.99 a month from $21.99, prompting eight of nine analysts who cover Netflix - on a single day - to downgrade the stock."

Good overview of company's past, present, and possible future.
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