Monday, April 24, 2006

Netflix Beats Estimates and Guides Higher

It looks like they brought in a solid quarter and they raised their revenue estimates.

Heartened by the showing, Netflix predicted its sales this year will total at least $990 million, a $30 million, or a 3 percent increase, from its last projection three months ago. But management didn't change its earlier earnings projections, reflecting plans to spend more money on advertising to attract more customers.

I still think their service is gaining traction and is starting to become the accepted way of renting movies nowadays. I know at least three people at work that use Netflix exclusively. I mean the value cannot be beat. You can rent 1 DVD from Blockbuster for $6 or you can rent a whole month full of movies for just a few bucks more.

Plus I kept Footballers Wives for like 3 weeks strait and I didn't have any problems. I remember rushing to get movies back to Blockbusters before 12AM or I would have to pay either to rent it again or a late fee. Now when I was done with the DVDs I just dropped them in the mail and waited for my next ones to come in. It is a great deal.

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