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NFLX Slammed As Amazon Smashes Barrier To Entry "Fallacy"

Tyler Durden's picture




 

NFLX is down over 10%, back to two-year lows, as not even Whitney Tilson can save the 'game-changer' from the reality of unsurprisingly low barriers-to-entry. Sure, it will be spun; sure, analysts will maintain 'value' buys (7 buys and 20 holds); but Amazon's deal with Epix this morning adds a greater-than-800lb gorilla to the room in which Netflix plays...

 

 

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Tue, 09/04/2012 - 10:29 | 2760139 GetZeeGold
GetZeeGold's picture

 

 

 

....and it's gone.

 

Tue, 09/04/2012 - 10:34 | 2760168 i-dog
i-dog's picture

Another group of muppets about to meet the shearer. Soon there'll be no more re-runs of the Muppet Show!

Tue, 09/04/2012 - 11:08 | 2760227 Dr. Richard Head
Dr. Richard Head's picture

It's time to prime the printer
It's time to prop up banks
It's time to fleece the Muppets on the stock exchange tonight.

It's time to mark to model
It's REPO 105
It's time to prop the market till the Muppets fucking bite.

Tue, 09/04/2012 - 11:12 | 2760381 Biosci
Biosci's picture

Why do they always come back?
I guess we'll never know
But still they fund my weekend
of Czech whores, booze and blow!

 

[brilliant -- thx!]

Tue, 09/04/2012 - 10:51 | 2760246 teahouse
teahouse's picture

..............taaadaaaaaahhhh....

Tue, 09/04/2012 - 10:30 | 2760144 Jason T
Jason T's picture

there is a massive bubble in available "content."

the intennet alone is more than enough.  NFLX, SIRI, Cable TV, Land lines, ..who needs all this stuff?

Tue, 09/04/2012 - 10:33 | 2760161 aint no fortuna...
aint no fortunate son's picture

This should pop Amazon's PE over 300

Tue, 09/04/2012 - 10:37 | 2760174 Cursive
Cursive's picture

@Jason T

all "content" feels like an infomercial now.

Tue, 09/04/2012 - 10:39 | 2760187 Conrad Murray
Conrad Murray's picture

The Century of the Self has passed, it now shall morph into The Century of the SELL!

Tue, 09/04/2012 - 10:44 | 2760213 redpill
redpill's picture

If you don't own the content, the infrastructure, or manufacture the delivery mechanism, it's only a matter of time before your ship sinks.

Tue, 09/04/2012 - 10:31 | 2760148 Tijuana Donkey Show
Tijuana Donkey Show's picture

I thought this was a graph of Obama's approval rating?

Tue, 09/04/2012 - 10:32 | 2760155 moonstears
moonstears's picture

Quick, buy FB. Disclaimer:(in urbaneese) Hell to the no, I do NOT own either stock. 

Tue, 09/04/2012 - 10:32 | 2760158 Captain Benny
Captain Benny's picture

Poor robotrader.... may he R.I.P.

Tue, 09/04/2012 - 10:34 | 2760166 camaro68ss
camaro68ss's picture

Is it sad when you say Nflx down I think of robo trader losing a 1/4 of his portfolio position. Hahaha

Tue, 09/04/2012 - 10:34 | 2760167 Dr. Engali
Dr. Engali's picture

It's a good thing the HFT bots provided liquidity to slow the fall.

Tue, 09/04/2012 - 10:34 | 2760169 Dr Paul Krugman
Dr Paul Krugman's picture

I use Netflix.  

I watched "The African Queen" from my laptop last night while enjoying a glass of scotch.   

Tue, 09/04/2012 - 10:39 | 2760189 GetZeeGold
GetZeeGold's picture

 

 

When they made that movie the US actually had a working economy.

 

You should watch the Wizard of Oz tonight.....and then check the real story behind it. I'll send you a whole bottle of scotch.....you're gonna need it.

 

 

Tue, 09/04/2012 - 10:49 | 2760239 tip e. canoe
tip e. canoe's picture

just remember that in the book, Dorothy's slippers were made of silver.

Tue, 09/04/2012 - 10:47 | 2760229 Dr. Engali
Dr. Engali's picture

That was a good movie. I haven't watched that in a long time.

Tue, 09/04/2012 - 10:53 | 2760258 Winston of Oceania
Winston of Oceania's picture

TCM Channel on your i-whatever from directv also. More like NO barriers to entry...

Tue, 09/04/2012 - 11:06 | 2760341 Cranios
Cranios's picture

Really? I thought Michelle wasn't speaking until later this week? And she was on Netflix?

Tue, 09/04/2012 - 10:36 | 2760172 bankonthebust
bankonthebust's picture

NFLX rallies 3% as soon as this article went live. ZH reverse algos working extra hard today.

Tue, 09/04/2012 - 10:50 | 2760243 vertexa
vertexa's picture

Tough time ahead!! DOW BELOW 13.000!!! MARKETS START TO FALL!!!

Tue, 09/04/2012 - 10:58 | 2760293 MrPalladium
MrPalladium's picture

Netflix really screwed up by not using its $300 stock - back at its peak - to invest in content and thereby acquire a blocking position to limit competition.

Back then Lions Gate (LGF) with its 8000 film library was selling for $6.50. NFLX could have offered and 80% premium without strain.

Idiot NFLX management did not understand the dominance of copyright in the media business.

Tue, 09/04/2012 - 11:31 | 2760481 Arnold Ziffel
Arnold Ziffel's picture

palladium, Bingo! exactly what I think...hard to beleive they dropped the ball on this.

Tue, 09/04/2012 - 12:23 | 2760726 MrPalladium
MrPalladium's picture

The content owners are gathering all the profits as licensing fees have increased ten fold over the past two years. This was entirely forseeable. With no barriers to entry the pipeline becomes valueless and has no prospect of profit growth. The window for pipelines acquiring content is now effectively closed.

Tue, 09/04/2012 - 10:59 | 2760303 catacl1sm
catacl1sm's picture

Silver is still doing well today. Silver, BiTCHeZ!

Tue, 09/04/2012 - 11:41 | 2760536 The worst trader
The worst trader's picture

Time to BTFD.

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