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NET FLIX Free Resources
Did I just wa...
Did I just wake up in 1999? A profitless dot-com went public two weeks ago with a business model that's heavy on the Swiss and the market is okay with this? I mean, no offense, Netflix (Nasdaq: NFLX), but you were pretty much the last company I expected to see come barreling down what had been a chilly Initial Public Offering gateway. But, here you are, walking down the red carpet with the paparazzi flashing away, and I'm on the other side of the velvet rope scratching my bewildered head.
For those who don't know Netflix, the company pioneered the all-you-can-eat direct-mail business model for DVD rentals through its namesake website. Subscribers pay $19.95 a month for the basic subscription plan that entitles users to order DVDs online. Netflix foots the shipping tab each way and there are never any late fees. You just have to return the movie you have to get the next one.
Founder Reed Hastings dreamed up the concept after renting Apollo 13 at his neighborhood Blockbuster (NYSE: BBI), only to be hit with $40 in late fees when he returned it a month later. Reed, bro, is this really a story you want to go around telling people? What? You didn't know how the movie was going to end? You had to brush up on the entire cast for your next Six Degrees of Kevin Bacon home party? Come on, now. This exact experience in the concept you created would still run the return slacker a hefty $20 in subscription fees. I realize that every dot-com is under pressure to come up with some crazy story to keep up with eBay's (Nasdaq: EBAY) Pez dispenser roots, but please.
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