Netflix headlines may appear rosy as top and bottom lines were a beat but guidance on revenues and subrscriber adds perhaps rings the death knell on this mythical beast...
- *NETFLIX SEES 2Q NET ADDS BELOW THOSE OF 2010 :NFLX US
- *NETFLIX SEES 2Q REV. ABOUT $873M-$895M; EST. $893.4M :NFLX US
We can only hope that AAPL does not miss in any way on any metric ever...
[4]
Here is what not to put in your letter to investors when you are a zero barrier to entry streaming company whose business model is being assaulted by everyone, not least of all Apple.
We think our 2012 domestic streaming net adds will be about the same as in 2010, and that gross adds will approximately follow the 2010 seasonal pattern.
...
Due to the increased net adds quarterly seasonality, Q2 net adds will be below those of 2010, despite Q2 net adds following the traditional seasonal pattern, and despite us expecting to match 2010 in annual net additions.
and the funniest line ever in an official company filing:
We see nothing new or particularly concering this quarter to date in our member viewing, acquisition and retention. All are healthy.
Except your stock price...
Finally, this is how you destroy your company. What can one say but sweet streaming jesus: this must be what an exponentially accelerating dead cut has to look like.
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And another hilarious chart: total "profit" per foreign international paying sub. We only hope they can make up for it in volume...
[6]
Full letter: