Last week Netflix executives, stockholders, and customers experienced a roller-coaster of emotions. On Thursday, Oct. 21, Netflix stock hit an all-time high of $172.69 up $19.54 or 12.76%. Netflix first went public on May 23, 2002 selling it’s initial stocks at $15 per share or an adjusted post spilt price of $7.50.
The meteoric rise of Netflix stock prices has s direct correlation with the company investing heavily in licensing agreements to add more content to it’s streaming library as it is more profitable than mailing out DVD’s. From July through September Netflix spent $115 million video streaming rights nearly 10 times the amount spent the same period in 2009. Netflix CEO, Reed HAstings predicts subscribers will soon be watching more streaming content than on DVD’s , which the company delivers by mail.
The growing popularity of the company’s streaming service has aided both in the rise of the stock price, and in the demise of brick and mortar rental facilities such as Blockbuster and Hollywood video. Ironically enough, while the champagne corks were popping for the executives and shareholders, customers were hitting the social networking websites complaining about the inability to stream any content whatsoever. The outage took place just after the closing bell of the New York Stock Exchange, around 4pm eastern time which Netflix acknowledged on their Twitter account yet provided no explanation. Approximately 7:15 pm eastern time, Netflix, as well as many users, confirmed the service was again up and running on most devices but warned some people may still be having intermittent issues.
With the popularity and success of Netflix and other streaming video services it seems as if the television climate is changing for the betterment of the consumer. How do you watch TV? Are you still subscribing to cable or satellite or have you gone the specialty a la carte service such as Netflix, Roku, Apple and Google TV?