Netflix announced that it has passed the 10 million subscriber mark. The news comes a little early as this was thought to hit at the end of the quarter that they are half way through. Shares traded up on the news. Shares have moved nicely this year and are getting close to a $41 fifty two week high. I am a netflix subscriber and would of loved to have been a shareholder at the same time I started subscribing. I have also been a blockbuster subscriber as I gave their Total Access a try with a neighboring Blockbuster being a convenience.
Blockbuster recently announced it will be renting games through the mail. This is not a suprising move but suprising that they beat Netflix to it. For a couple of years it has been made as a note that Netflix should buy Gamefly, the already dominating video game rental through mail service. I think they should buy Gamefly or at least join in to take away from Blockbuster. The video game market is growing and the only potential problem is the sports game that are reprodcued annually. The games could be resold to game stores or consumers. Gamestop has had no problem reselling used games.
Look for shares to fall back closer to $30 before you pull the trigger. Shares should trade at $50 at some point in 2010.
No comments:
Post a Comment