In the following video, Jason Moser discusses Netflix with David Meier, who shares the important takeaway messages from yesterday's Netflix investor conference.
Although Netflix has been a volatile stock over the short term, David sees it as a long-term play. He compares it with Amazon.com and Comcast, both of which are making farsighted investments with the intention of becoming the consumer's preferred entertainment provider, just like Netflix is.
David describes the company's business model as buying content first, such as through movie deals with Disney, and attracting subscribers later. He compares the great content with that of AMC Networks, another company that's been successful lately. He emphasizes the timeless nature of Netflix's great content even as television continues to evolve and content delivery methods change with the advent of new devices.
Given these positives, David closes by saying that Netflix is worth buying, even at today's prices. He sees value in the company's database of viewer preferences and in its long-term investments in technology.
The precipitous drop in Netflix shares since the summer of 2011 has caused many shareholders to lose hope. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why we've released a brand-new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.