Never a dull moment with Netflix! Last month, the company just announced an exclusive deal to stream The Walt Disney Company (NYSE:DIS) movies just months after they are in theaters. The stock was up 5.5% on the news. But a couple of days later, SEC ‘friended’ Netflix by alleging Netflix and its CEO Reed Hastings violated the Reg FD (Regulation Fair Disclosure) over a Facebook post by Hastings and is seeking legal action.
As we previously discussed, Hastings posted on his Facebook page on July 3, 2012:
Continued from part one... Q1 hedge fund letters, conference, scoops etc Abrams and his team want to understand the fundamental economics of every opportunity because, "It is easy to tell what has been, and it is easy to tell what is today, but the biggest deal for the investor is to . . . SORRY! Read More
“Netflix monthly viewing exceeded 1 billion hours for the first time ever in June. When House of Cards and Arrested Development debut, we’ll blow these records away.”
“We don’t necessarily view these total streaming consumption stats as bullish (in the long run), as it does not necessarily lead to greater subscriber growth or higher pricing.”