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*Update* Netflix IPO: Why Can’t They All Be Like This?


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*UPDATE* Netflix IPO 2013

Before Facebook went public, the constant hype and focus was on Netflix. Like Bitcoin’s daily prices, this public offering has seen its fair share of high’s and lows. In the past few months, the movie rental terminating company once again made headlines with it’s recent deals. Another jewel that has helped Netflix become even more appealing are their exclusive series. They first tested the waters with a series called “Lily Hammer” before bringing in the big guns like Kevin Spacey to lead their political drama “House of Cards.” To round out their original series hat trick they breathed life once again into a highly demanded hysterically twisted sitcom “Arrested Development.” For years their strong cult following has been vocal about getting the estranged family back on the air. Netflix used this opportunity to gain some great publicity by adding to the growing selection of TV series and movies. So with hundred of competitors biding their time to overthrow the video-streaming giant, what has Netflix been up to in the last year?

Netflix Makes a Deal With Disney

While Netflix recently bid adieu to their catalogue of Viacom backed Nickelodeon shows and movies, Netflix caught an even bigger fish this past year. Media giants at Disney recently signed with Netflix to feature Disney classics and future projects. To many Netflix owners who are growing families the selection of timeless classics can be quite appealing.

Dreamworks and Netflix Strike a Deal

To ensure their success in securing more families, Netflix and Dreamworks also recently made a deal along the same lines as Disney. Netflix’s movie and TV series are also working on a cartoon series based off of Dreamworks’ upcoming film Turbo which is about a snail who, if the title didn’t give it away was extremely fast. Families with young children can expect that around December of this year.

Netflix Original Series

As I mentioned above, Netflix isn’t stopping at just streaming videos. While Amazon.com dominates online shopping, Netflix still has the upper hand with their multiple series. They started with “Lily Hammer,” then moved onto recruiting bigger names like Kevin Spacey. Reviews for this series have been an array of accolades for his performance and the series in general. The real achievement for Netflix though was getting their hands on “Arrested Development.” This hilarious gem starring Jason Bateman, Will Arnett, Michael Cera, and David Cross was on a long hiatus before getting the green light for the third season. Hopefully this will help add to Netflix’s value as the year progresses.

What is Next For Netflix?

Even though Netflix has already quadrupled their stock since last summer, there are rough times ahead for this media masters. While Amazon.com doesn’t have their own shows yet, they still give Netflix quite a run for their money. What could be worse for Netflix is if they lose another asset like Viacom and Nickelodeon, and are unable to put together a deal like Dreamworks to save themselves. If that wasn’t enough it seems that Hulu Plus is also slowly creeping up towards Netflix’s reign which could result in some interesting events in the next few months. Only time will tell though, so definitely be sure to stay posted!

–Original–

Netflix IPO Easily One Of Last Decade’s Best

With so much attention and fervor surrounding the new breed of Internet and technology companies that are mulling initial public offerings (IPO), it’s easy to forget that we’re all that far removed from the Netflix IPO. That’s right, Netflix (Nasdaq: NFLX), the company that revolutionized the way people rent movies doesn’t even have 10 years under its belt as a publicly traded company.

Investors were treated to the IPO in 2002 and what a treat it has been for those that have held onto the stock for all those years. Chances are there aren’t a lot of investors that have held the IPO that long. It be legitimately argued that this IPO  at the time of its debut did not look like the type of stock investors would buy, hold and forget about.

It still isn’t. Their IPO, the company has grown by leaps and bounds, but it is still, clearly, a growth stock. Netflix is highly volatile, trades well into triple digits and doesn’t pay a dividend. Assuming one doesn’t care about the price tag, the issues of volatility and no dividend still mean the Netflix IPO would’ve been a tough hold for almost 10 years.

Netflix IPO

Jaw-Dropping Returns

Want to know what the Netflix was priced at? A mere $15 a share. Want to know what the stock trades at today? Over $200 and the stock has traded above $300 recently. Even with the recent nasty slide, the Netflix IPO turned into the stuff IPO legends are made of, returning nearly 2,700% since its 2002 debut.

Since the it came to pass nearly a decade ago, the stock has outperformed Google (Nasdaq: GOOG) by a margin of five-to-one. Amazon (Nasdaq: AMZN) has turned into a bitter rival for Netflix, but even though Amazon is up close to 1,000% since the Netflix, that run still can’t sniff what Netflix has done for shareholders. And remember this: All of the returns generated by the Netflix IPO have been delivered by capital appreciation since the company has NEVER paid a dividend.

Sitting On A Throne Unto Itself…For Now

 Will there be another company whose returns can rival those of the Netflix IPO? Certainly, but finding those gems is always easier said than done. Facing bitter competition and rising costs, Netflix itself is likely to find the going tough in terms generating returns in the next decade that are anywhere near what it has delivered in the past decade. Still, the IPO is one most investors only dream of.

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