A Fool Looks Back

Netflix (Nasdaq: NFLX  ) had another rough week.

The video service giant's biggest problem came from Viacom (NYSE: VIA  ) , which revealed that it will make its Epix content available to rival streaming providers.

Netflix inked a five-year deal with Epix two years ago, beefing up the service's first-run streaming content. It may set Netflix apart from other services, but can you think of another platform that would pay Epix nearly $200 million a year for streaming rights? A lack of exclusivity will also provide Netflix with leverage in trying to negotiate lower rates down the line.

Netflix has its problems, but unlike Viacom's Nickelodeon, at least it's not losing viewers.

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Sirius XM Radio (Nasdaq: SIRI  ) bumped its subscriber guidance higher. The satellite-radio provider now expects to add 1.5 million accounts this year, up from its earlier goal of 1.3 million net subscriber additions. Do you still think this is transitory technology?
  • OpenTable (Nasdaq: OPEN  ) took a hit after failing to serve the kind of growth the market was expecting. Revenue at the online dining reservations site climbed just 17%, even though it now is servicing 22% more restaurants and seating 34% more patrons. Platform popularity is asking for the check, but the bears are still working on dessert.
  • Smartphone and tablet accessories maker ZAGG (Nasdaq: ZAGG  ) delivered better-than-expected quarterly results, with sales more than doubling. Piggyback and coattail plays never go out of fashion.

Moving on
Now that you've had a glimpse of the past, let's delve into the future. A new report details the latest Rule-Breaking multibagger that has earned Fool co-founder David Gardner's attention. The report is free, and you're closer to it than you might think. Check it out now.

The Motley Fool owns shares of OpenTable. Motley Fool newsletter services have recommended buying shares of OpenTable and Netflix and writing naked calls on ZAGG. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He owns shares of Netflix and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 05, 2012, at 8:40 AM, doubting wrote:

    Rick,

    Below are my comments on FCC denying Liberty's petition for de facto control of Sirius XM. Your article was probably ready before this news came out.

    Maybe Mr. Malone is a genius but in this particular transaction he simply failed miserably. Let us call a spade a spade.

    I am really puzzled by such a stupid de facto move from a genius. Maybe we are overestimating him a little bit, or maybe we are underestimating another genius, who proved to be one in this particular case, Mr. Mel Karmazin. So far, Mel has not lost (by losing I mean won or got what he wanted) a single case. Look at the merger, price increase, Howard, Blessing, Shenk Sound Exchange (he will squeeze them if anyone has any doubts) and now Liberty with its genius Mr. Malone.

    The fundamental question is why Mr. Malone went the mind boggling de facto way vs. buying another 11%. This is either miscalculation or arrogance or both. I cannot see any other explanation. Another upcoming in the face event will be the Board of Directors reappointing Mel for another three years. The majority is still a majority, with eight directors voting for the interests of the "smaller" 60% despite the "larger" 40% of Malone's!!!

    I said it before and I will say it again. Malone got the first 40% for $12K (TWELVE THOUSAND DOLLARS IN 2009) with practically ZERO risk collaterized by huge siri assets. Now, it is time to pay up. Those who think that Mel has $3 a share in mind for the required 11% are being fools grossly underestimating the GENIUS of Mr. Karmazin. I have no doubt whatsoever that they have been talking different numbers from day one, and Mr. Karmazin may even have provoked Mr. Malone back in November when New York Post leaked the news about them negotiating. I will not be surprised to see twice today's share price. We know how it works in life: what comes around goes around. Mr. Malone won in 2009, now it is time to square the accounts. It is like a poker game where you cannot win all the time. Remember Henry Paulson making billions betting agents the market. After that he lost billions in similar bets. You have to be Warren Buffett who never makes super bets but invests mega patiently and super carefully to make good money.

    To conclude, we are in for a huge performance with two brilliant actors where one way or the other our patience will be handsomely rewarded.

  • Report this Comment On May 07, 2012, at 3:46 PM, dfernandez wrote:

    concerning Zagg, i have heard rumors of a meger our out right sale? do you have an information to support these talks?

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