Technology StocksNetflix (NFLX)

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From: zax1/17/2012 10:55:27 PM
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Netflix Hit With Class Action Suit By Angry Investors
By Daniel Frankel
Jan 17, 2012 1:40 AM ET

Netflix ( NSDQ: NFLX) has been hit with a class-action suit by a group of disgruntled investors who claim the online movie-rental chain withheld information from them prior to its steep stock-price plunge over the late summer and fall.

The lawsuit was filed in U.S. District Court in Northern California, by the City of Royal Oak Retirement System, and seeks compensation for all shareholders stock who purchased Netflix stock bwetween December 20, 2010 and October 24, 2011.

SEE ALSO: Netflix Has Launched In UK, Price War With Amazon's Lovefilm

The complaint claims Netflix senior management didn’t disclose that many of its contracts to stream content were short term and would soon have to be renegotiated at substantially increased cost. It also states that CEO Reed Hastings made $43.2 million selling 190,000 during the period in question.

It says the defendants violated section 10(b) of the Securities Exchange Act of 1934. The provision forbids manipulation or deception in the securities market, and has been invoked in thousands of investor related lawsuits.

The investors are represented Robbins, Geller, Rudman & Dowd LLP, a firm that specializes in corporate class actions, and has won large verdicts against companies like Enron and AT&T ( NYSE: T). Class action law firms typically attempt to force a settlement from firms and then take a commission of around 25 percent.

In addition to Hastings and the company itself, the defendants are: CMO David Wells; chief content officer Ted Sarandos; chief product officer Neil Hunt and CMO Leslie Kilgore.

A Netflix spokesman has yet to respond to an inquiry made late Monday by paidContent.

Netflix stock was trading on the NASDAQ at $291.27 per share on July 12, the day before Netflix announced separate charges for streaming and DVD and a 60 percent price increase for some subs. It quickly abandoned an attempt to spin off its disc-rental operation. The moves that were rejected by consumers and investors alike.

Netflix stock closed after-hours trading Friday at $94.79 a share. On Tuesday, company shares were up almost 2 percent in mid-afternoon trading.

The suit, posted on the law firm’s site, contends:

“At the beginning of the class period, Netflix was facing increasing competition for streaming business, and content providers were exploring new ways to distribute their content and/or maximize their licensing fees, … Rather than fully disclose the devastating cost increases which were then threatening Netflix’s entire business, the defendants talked about [their] ability to grow.”

The suit also notes that Netflix senior managers sold many of their shares when the stock was high, netting $90.2 million between them. It doesn’t cover the circumstances of those sales—whether or not they were pre-scheduled, for instance, or how much stock those managers may have acquired.

Netflix class action

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To: zax who wrote (685)1/26/2012 6:44:35 AM
From: Dr_of_Microcaps
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From: ChrisGillette1/26/2012 8:02:48 PM
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A posting over at Hacking Netflix sums it up pretty well…

People begging for a Netflix competitor don't seem to grasp how much of a lead the company has. To succeed in this, you need a whole set of pieces (viable library, apps on most appropriate devices, streaming infrastructure, customer base) that are really hard to build once there's a strong incumbent.

All the recent talk of decline at Netflix was incredibly stupid, and going forward, we'll see why.

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From: 2MAR$1/27/2012 4:13:50 AM
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NFLX boom to $116 ...didn't want to be anything but long early to near $120 then short scalp was Ok for the headlines take your pick ;o)

Enjoy the Netflix Ride, While it Lasts

NFLX: Tilson Takes Victory Lap, Slams Bear Thesis

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From: TimF2/3/2012 11:40:44 PM
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Netflix Dives Into Original Programming with "Lilyhammer" Series Before "House of Cards"

"Lilyhammer" will be available starting February 6 while "House of Cards" will premiere later in 2012

In March of last year, it was discovered that Netflix was looking to acquire original programming. It's still pursuing that venture, but the first series isn't what was originally expected.

Netflix was bidding against other networks like AMC and HBO in March 2011 for the original program "House of Cards," which is a Media Rights Capital drama series about a British politician who is looking to succeed Margaret Thatcher as the prime minister. As it turns out, Netflix won that bid and the show was set to be the video streaming/DVD rental giant's first original series.

However, it seems plans have changed. While "House of Cards" will still debut later in 2012, Netflix has another original program that will premiere long before that. In fact, the show will be out next month.

Netflix's first dip into original programming will be a show called "Lilyhammer," which is about a New York mobster named Frank "The Fixer" Tagliano who is entering the federal witness protection program. He ends up moving to a Norwegian town called Lilehammer, but he calls it "Lilyhammer."

The first season of "Lilyhammer" will have eight episodes, and Netflix has committed to two seasons for now. It will be available for video streaming on various devices, but not for DVD by mail...

(at the link their is an embedded video of the preview of the new show)

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From: Sr K2/6/2012 12:26:18 PM
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Verizon Forms Video Venture With Redbox

By Scott Moritz - Feb 6, 2012 11:15 AM ET

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From: marketfriends2/6/2012 1:05:30 PM
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Netflix is set to release their new original series, "Lilyhammer"

Thus far it seems to have been given a warm welcome.

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From: J.F. Sebastian2/6/2012 2:55:26 PM
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A look at Netflix since much-hated price hike

Key events involving Netflix since a backlash against it began over the summer

Some key events involving Netflix since a backlash against it began over the summer:

July 12, 2011: Netflix Inc. says it will raise prices by as much as 60 percent for millions of subscribers who want to rent DVDs by mail and watch video on the Internet. The company decided to separate the two options so that subscribers who want both must buy separate plans totaling at least $16 per month. Netflix Inc. had been bundling both options in a single package starting at $10 per month.

Sept. 1: The price hike begins to take effect for existing customers. New customers had the new prices immediately.

Sept. 5: Netflix begins to offer its service in Latin America. Like its counterpart in Canada, the Latin American service is streaming-only, with no options for getting DVDs by mail.

Sept. 18: Netflix CEO Reed Hastings apologizes but keeps price hike in effect. Company creates more anger when it announces plans to split into two services — Netflix for the streaming, and Qwikster for the familiar discs in red envelopes. That means subscribers have to visit two websites to make movie requests and update billing information. Hastings says the two businesses have different cost structures and benefits, and splitting would let each grow independently.

Oct. 10: Netflix backs away from its plan to split its two services.

Oct. 24: The company discloses that it lost 800,000 U.S. subscribers in the July-September quarter, ending with 23.8 million. That loss is more than the 600,000 that Netflix had predicted.

Nov. 21: Netflix announces plans to raise $400 million by issuing debt and selling its stock. The move raises new fears about Netflix's financial strength as it girds for losses next year. It would be Netflix's first annual loss in a decade.

Dec. 6: Hastings appears before an investors' conference in New York, where he laments the company's recent mistakes but predicts they will be forgotten as Netflix's Internet video service continues to reshape the entertainment industry.

Dec. 22: Netflix says Hastings's stock option awards will be cut by 50 percent to $1.5 million in 2012. His base salary remains unchanged at $500.000.

Jan. 4, 2012: Netflix delivers its first good news in months, sending its stock up 11 percent. The company, which delivers movies and TV shows online and by mail, says customers had streamed more than 2 billion hours of video in the fourth quarter.

Jan. 25: Netflix releases figures showing it regained almost as many U.S. customers as it lost following the price hike. It ended December with 24.4 million subscribers in the U.S., a gain of 600,000 from the end of September. It had lost 800,000 last summer. The results came after the close of market, and the company's stock soared 22 percent the next day.

Feb. 6: Verizon Communications Inc. and Coinstar Inc. unveil plans to challenge Netflix with its own streaming service to bundle with DVD rental kiosks operated by Coinstar's Redbox division. Getting an extensive library of streaming content to rival Netflix's will be expensive, though. Netflix, meanwhile, debuts its first original TV series, an eight-episode drama called "Lilyhammer," as it hopes to differentiate itself from rivals.

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From: 2MAR$2/7/2012 12:53:17 PM
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NFLX $133 , island reversal off $122 on CSTR/VZ j/v pressure yesterday when new rumors of AAPL tv product tie in surfaced

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From: Sr K2/21/2012 1:07:21 PM
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Comcast to Launch a Netflix Rival

Comcast is taking aim at Netflix, unveiling its own streaming-video service that will give existing Comcast video customers a similar selection of old TV shows and movies over the Web.

BUSINESS | FEBRUARY 21, 2012, 1:08 P.M. ET
Comcast Is Launching a Netflix Competitor


Comcast Corp. is taking aim at Netflix Inc., unveiling its own streaming-video service that will give existing Comcast video customers a similar selection of old TV shows and movies over the Web.

The Philadelphia-based cable operator said Tuesday that the new service would be called Xfinity Streampix, and will be bundled with certain tiers of Comcast video service, and available for $4.99 per month to other Comcast video customers. By contrast, Netflix's streaming-video service costs $7.99 per month.

Comcast's new service will include such shows as "30 Rock," from its own NBCUniversal unit and "Lost" from Walt Disney Co.'s ABC, as well as movies like "Ocean's Eleven," from Time Warner Inc.'s Warner Bros. The programs, typically of prior seasons of shows, will be available on the Web and on mobile devices to subscribers in and out of the home, similarly to Netflix's offering.

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