Netflix vs. Tivo
So here's a question for my financial-minded friends and Tivo-addict friends. How in the world can Netflix be a $50 stock?

We've happily been using Netflix since August and have been recommending it to friends. However, it was pointed out to me by some smart friend (and my apologies, I can't recall who it was) that DVD renting will go away as soon as everyone gets comfortable with movies on demand.

Time Warner is already making it hard not to get on board with all the new technology. They even have their new Tivo-like product that's only an extra $6 a month over digital, so the only hurdle is actually showing up to the cable company and swapping your cable box (or they'll deliver for $30.)

So basically everyone is going to have a TV/DVR type thing within what, five years, right? And as soon as they get comfortable watching things on demand, there's no need for Netflix, right?

So who's bidding this stock up to $50? It's only good if some major company is foolish enough to buy them out and then realize two years later that they have to write off the loss. Am I missing something? Is there a long-term plan?
- posted by Amy @ 12/21/2003 09:06:00 PM