The 1Q 2007 conference call Netflix had with analysts was quite interesting. Never before had I heard a competitor mentioned by name in a call so often. Repeadly Netflix discussed Blockbuster, and even gave an estimate of how much money BBI is loosing on their ‘Total Access’ program!
It is sort of funny that Netflix is complaining about a price war that they started 1.5 years ago! They were quite happy being the low price high growth side, but now that they are being under cut, the situtation is a little different!
Anyway, both BBI and NFLX should come to their senses and raise their subscription prices. A price war does no one any good, except consumers, who have been getting a discounted ride for quite some time.
It will be interesting to see if the NFLX predictions of a 200 million dollar loss for 2007 due to Total Access comes true…stay tuned, BBI reports May 2nd!
