Are you a Netflix fan?
Netflix’s online TV and movie streaming service is immensely popular. It is now available in over 190 countries with over 81 million subscribers. Amazing, considering that the company started out as a postal DVD rental service.
This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.
In fact, back in the year 2000, the movie rental business Blockbuster famously passed up a chance to buy Netflix for US$50 million. On a market capitalisation basis Netflix is now worth 800 times that number. Certainly wasn’t Blockbuster’s finest moment!
Not surprisingly, Blockbuster eventually filed for bankruptcy in the US in 2010 due in no small part to the rise of online streaming services such as Netflix. In this article, we consider whether the same fate could await traditional broadcast TV companies who are now facing increasing competitive threats from Netflix and whether you should invest in Netflix.
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