What’s the future of the popular movie rental/streaming website Netflix, Inc. (NASDAQ:NFLX)? Nobody knows that answer for sure but their future is not looking too bright these days.
Reed Hastings, the chief executive officer for Netflix, Inc. (NASDAQ:NFLX), recently shared his true feelings about the company during a earnings call. One analyst asked Hastings why “seasonality” and the Olympics had such an impact on the company’s earnings. Netflix’s CEO then responded, “You’re very gracious, because I imagine what you really feel is: ‘Why do we make seasonality excuses and then Olympics excuses?’ And aren’t you getting tired of hearing it? We are tired of making those excuses, as opposed to getting back to our track record.”
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He also mentioned later that they missed their target this year. The company was aiming for the goal of accruing 7 million new streaming customers this year but instead will end up with a number between 4.7 million to 5.4 million.
Hastings then closed his statement with the following message, “We’re continuing to work very hard and look forward to being in a better place relative to our guidance a quarter from now. We certainly try very hard every quarter. It doesn’t feel great to come in at a lower half, but it is what it is.”
Netflix, Inc. (NASDAQ:NFLX) may need to keep their focus on their top competitor. Jeff Bezos has been building Amazon’s digital collection of movies and TV shows which are available for streaming. Amazon.com, Inc. (NASDAQ:AMZN) shoppers who subscribe to Amazon Prime can access their entire collection for just $79.99 a year. The perks for Prime subscribers doesn’t stop there, they also enjoy free two-day shipping and a free Kindle book rental each month. It’s a real bargain, especially when you add in free shipping and book rentals.
Although Amazon’s.com, Inc. (NASDAQ:AMZN) service has yet to catch on with many, that’s not to say that they’re far from changing the way people watch TV.