40 Million Reasons Netflix Was Wrong?

Buoyed by Netflix's (NASDAQ: NFLX  ) dramatic rush away from the DVD rental business, Coinstar (NASDAQ: OUTR  ) has seen some impressive success with its rival Redbox kiosks. In fact, the company just passed 40 million customer accounts.

But subscriber growth isn't the only thing Netflix is missing out on by dialing back its challenge for the DVD rental market. In the following video, Fool contributor Demitrios Kalogeropoulos discusses how Coinstar is seeing profitability spike as Blu-ray disc usage rises. And console video game rentals have been another bright spot for Coinstar. With Netflix keeping its focus on streaming, it doesn't look as if its priorities will be changing anytime soon. And that leaves Coinstar well positioned to dominate the DVD business for years.

The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. 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 The Motley Fool has released a 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. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.


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