Netflix Investors Giddy with Verizon Buyout Rumor
Netflix Investors Giddy with Verizon Buyout Rumor
Posted 12/12/2011 at 12:59pm
| by Paul Lilly
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Netflix shareholders haven't been thrilled with Netflix's direction the past few months. After announcing a spin-off of its DVD-by-mail rental business and higher prices for streaming and DVD services combined, subscribers raged until Netflix reversed course on severing its DVD arm, but the company didn't relent on recent price hikes. It's been paying a price in subscriber losses ever since. Enter unhappy investors, though talk of Verizon taking over the streaming service has them smiling once again.
Shares of Netflix stock jumped by as much as 6 percent today after a report surfaced from DealReporter suggesting Verizon is thinking about buying the streaming and DVD rental service, CNet says.
We already know Verizon is interested in streaming media, and in addition to launching its own service, the wireless communications company also looked at buying Hulu, CNet reports. Verizon appears motivated in becoming a player in the streaming sector one way or another, but what isn't known is how motivated Netflix would be to sell, even after all that's happened recently.
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frizzly
December 13, 2011 at 12:51pm
if this happens, I will probably just go with Amazonspremium plan that gives you video streeming and 2 day shipping on purchases for $80 a year.
bling581
December 13, 2011 at 10:39am
This would probably be the end of the Netflix as we know today. It's no secret that ISP's hate Netflix, so what good could come from an ISP buyout? In the short term I don't think they would do anything because everyone saw what happened when Netflix raised their prices, but eventually they'd add something ridiculous like useage fees or throttle the data. How do you think other content owners would react to another ISP/cable competitor owning Netflix?
livebriand
December 12, 2011 at 10:23pm
I absolutely do NOT want to see this happen - verizon is greedy, and netflix is fine as it is (though I will NOT stop my disc rentals unless they have all the latest titles over streaming).
QuadraQ
December 12, 2011 at 9:03pm
The investors might be happy, but as a user I'm not!! I sure hope this is only a rumor...
Phrish
December 12, 2011 at 4:47pm
Verizon is a bungler. They bungle things. If offered something k3w1 and nice, they bungle it until it's bunglie-booglie-bucked-up.
*coughgalaxynexuscough
Bungler...
devastator_2000
December 12, 2011 at 3:04pm
I have had a netflix subscription since 2004. If Verizon buys them out, thats the day I cancel my account.
Holly Golightly
December 12, 2011 at 2:43pm
Oh gosh no!!! Knowing Verizon? They would probably jack up the price to $65 for NetFlix access. I mean, their broadband is over $200 after taxes and surcharges!!! Their FiOS TV is over $90, and their cellphones? Truly at an outrageous price. I would not be surprised to see people paying Verizon $400 a month for all 3 services. No thanks Verizon. You buy NetFlix, and I'll go with RedBox.
Blaze589
December 12, 2011 at 3:32pm
I'm not sure how you got those numbers but our Triple Play bundle is quite reasonable.
Phone w/ long distance: $22.01
FiOS TV HD Extreme (funny name): $57.99
FiOS internet 25/15: $19.99 (speeds are more like 30/25)Taxes and Fees: $18.16
STB $5.99 (SD); $9.99 (HD)
Premiums: VariesUnbundling these services would see a substantial price hike but nothing near what you indicated. For example removing the TV service would cost about $100 or a little less. The flat rate with 1 HD STB and taxes and fees (no premiums) would be around $130.
Holly Golightly
December 12, 2011 at 4:38pm
Oh, I only compared Verizon's top of the line FiOS package. The website has the Ultimate HD for $89.99 a month. For broadband, if you get it without the home phone, it will cost $200 for 150/35. I am not sure how much Verizon charges for FiOS home phone. I use Verizon Wireless, and my bill is always high. I have a family plan of 5.
Monthly Charges $235.90
Surcharges and Credits $17.82
Taxes and Fees $22.48
They really nit pick on everything. Each line is $10, and to add unlimited text messaging is a total of $30 extra dollars. The list goes on and on. One can easily become broke with a company like Verizon. This is why I do not trust them at all. So if they buy out netflix, I can expect them to charge surcharges, credits, taxes, and fees.
Anhow, here are the insane prices Verizon is asking for in the New York market:
https://www22.verizon.com/home/fiostv/plans/#plans
I am fine with my cable DOCSYS3 internet. It may not be the world's fastest, but most websites aren't even optimized beyond 10mbps. Heck, Steam downloads at only 2mbps. So I am thinking of just switching over to Clearwire since it is the cheapest 4G out there. That way I can take my broadband anywhere I go and save money. Bills are getting out of hand.
nsvander
December 12, 2011 at 2:31pm
Verizon wants this for one reason, they want Netflix's architecture, (buy the rights, and kill of netflix and then bring it back as their own service) and then they could charge their current ISP users more because they would know how much they are streaming.
Jeffredo
December 12, 2011 at 2:06pm
Verizon is an old parasite living off the innovations of other companies. While Netflix investors may be happy its the beginning of the end for them. Hell, Blockbuster will probably end up doing better in a few years.
someuid
December 12, 2011 at 1:58pm
Meh, that would suck. I consider NetFlix and innovating company that shook up the lame video rental industry and the only company working to bring me tons of streaming content for a single, low monthly fee.
Verizon does not strike me as the same type of company. They are too big to look into the future. They are more concerned with entraping customers into their products and serivces and charging as many pennies as possible.
Should this happen, I'll fully expect Verizon to screw up NetFlix, and I'll drop them. It really sucks because there just isn't any other alternative. Hulu can go pound sand with their limitied availability, commericals, etc. Amazon and their per movie rental fee - no thanks. Video on demand - what an old concept that should be ended, and expensive and very limited in offers. Everything else has too small of a catalog to be of interest.
AntonioGarrison
December 12, 2011 at 1:10pm
After reading an article earlier today about Verizons idea of a streaming business, this would seem to end very badly for users of netflix. I would hate to have to deposit 50 cents per movie from Verizon.
Mortal_M
December 12, 2011 at 6:58pm
With our basic plan you can watch a total of 1.5 movies per day, after that it would cost $2.99 per each aditional hour of content you watch.
To that you need to add our $10 subcharge that noone knows why it's there but it's there.
oh, and don't forget about the taxes.
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