Netflix Earnings: Artificial Bubble or Success Story?

Tuesday, July 23, 2013

Will Arnett in 'Arrested Development' Season 4 (Netflix)

In May, Netflix did something no television network would: It revived "Arrested Development, the cancelled TV series with an enormous cult following.

Last week, Netflix made headlines again, when their Kevin Spacey-led political series, "House of Cards," garnering nine Emmy nominations.

And this week Netflix is getting attention again, this time in the business world. It was announced yesterday that Netflix has become the best performing U.S. stock in the Standard and Poor’s Index for this year, and the second most expensive.

Weighing in on the rise of Netflix—and whether the success can last—is Laura Hudson, culture and entertainment editor for Wired Magazine.

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Guests:

Laura Hudson

Produced by:

Kristen Meinzer

Editors:

T.J. Raphael

Comments [4]

Antony Van der Mude from Hackettstown NJ

Why does Laura Hudson repeatedly say that people "consume" television? What does that mean other than "watch" television? Is there any other way to "consume" it? If not, why didn't she say "watch" instead? I suspect an unfortunate preference for jargon.

Jul. 23 2013 03:42 PM
Kash from Missouri

I am 100% with Don. We're an OTA/Netflix/Amazon house. We have a SMART TV, a Kindle Fire two iPhones and an actual hard-wired desktop. We can and have streamed video to all five at the same time just to see if we could. I'm paying under $800/year for all of it when you factor in the high speed internet which is the most expensive piece and is a cost we'd have with or without traditional TV service.

When I visit someone with cable/satellite, I kind of feel like slamming my head in a door. 98% of what's on TV is absolute garbage to the point it makes my head hurt. That people are paying $1000-2000 per year for it just blows my mind. I might always have to wait a year to get caught up with the Walking Dead but it's not worth the extra $1,000. (Plus I can buy a whole season on Amazon for around $25 if I'm that desperate.)

And Rent a movie? NO. I might get a DVD at the library once in a while but that's because I'm not paying for it beyond my taxes. I can't fathom actually paying money just to borrow a physical movie. DVDs are the worst, especially if you have kids. You might as well pay $20 and then smash the disk with a hammer. Disney on Netflix? Hallelujah! I'm beyond in love wit it.

I think there are still people out there who are slow to embrace technology in general so they're scared of this much change. They don't realize just how easy this all is to use and how many platforms there are for it. My mother used to call me in college to walk her through resetting the VCR and turning on her PC and even she can navigate Netflix on our SMART TV.

Jul. 23 2013 03:13 PM
Don from Los Angeles, CA

Angel, though you may consider it a minority, but the number of people viewing streaming TV will rise as cable/satellite subscribers realize how much money they're throwing at TWC/Charter/AT&T/Verizon/Dish/DirectTV etc. $8 a month is pittance compared to the $150-200/mo packages that are being marketed from those companies. With Rokus, Apple TVs, and "Smart" televisions becoming more prevalent, Netflix, Hulu, and streaming television is only going to get bigger. It isn't going the same way as 3D (i.e. nowhere).

Jul. 23 2013 02:46 PM
Angel from Miami FL

The amount of people viewing TV through their computers or mobiles is still in the minority. It might be a minority with [seemingly] more disposable income but still a minority. People still view TV on a set though DVRs and VOD has allowed them to change their viewing schedule. And most people still buy and rent DVDs. Streaming video is still not available everywhere mostly due to bandwidth and cannot provide the same picture or control that's available from DVDs. Streaming television series on Hulu will be more acceptable than streaming Iron Man 3 which is expected to be in Hi-Def but can't be due to bandwidth. Cable TV and DVD rental services don't have much to worry about for another decade.

(They will worry about their stock prices. That's based on investor perception, not the fact that people who rent movies now use a mom and pop store, automated DVD dispenser, or a mail order service.)

Jul. 23 2013 09:54 AM

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