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Here we go for our ratings rumble shares of Netflix are looking for a banana stand boost what is apple actors from the series Arrested Development.
Taking guerrilla style promotion to the streets in recent weeks ahead of the series debut on Netflix -- popped up but he's president bananas.
-- don't miss the frozen banana -- I need that the show starts streaming on Netflix early Sunday morning the brand new season so it's the perfect time for Netflix ratings rumble.
Richard too -- is fired up he's with Albert -- company director of research she says Netflix has.
Too many squatters meaning there and I use this term loosely sharing their friends' accounts about paying for them and that this company is.
Really too too hot right now mark -- RBC capital markets managing director.
Is it Netflix supporter okay I'm gonna start with a -- here.
Market no question that this stock has found its footing and it's found its stock price it's looking very very good.
Comparatively and it was much higher a couple of years ago but tell me what it is about Netflix now.
When we see it is richly priced the PE ratio when you look forward -- earnings for most announces still -- a 72.
Yes you're right -- I I think what's happened is the fundamentals of build out step back they've got thirty million US subscribers and they're adding about five million subscribers a year.
There is no.
Media subscription business in this country that has that kind of scale it back kind of growth they're doing it because they've got a pretty compelling consumer value proposition which is eight bucks a month.
For unlimited videos and it turns out to consumers are increasingly.
Turning away from traditional television with exception of the show turning away from traditional television they're looking Burke.
They're looking for entertainment via devices and the proliferation of you know our laptops.
Ipads and iphones.
All sorts of tablets it's a boon for the growth of this business and that's what's really come out this fundamentals in the stock.
Richard Netflix does do that well and they are that one name out there I know that we often turn to it although -- we find better names on Amazon prime that's just the way I am but.
You went and you did your own kind of pop -- stand reporting tell us what you found about Netflix and why you're concerned about the company.
Yes and yesterday we spent the good part of the day in union square.
-- Well most of the time moves pretty sunny and we interviewed -- -- meals between the ages of seventeen and 35.
And we asked them a lot of different questions that we're pro our research -- -- research.
And we came out with some interest in finding this for example.
80% of the kids that we need that we interviewed.
We're watching Netflix but actually -- sharing accounts with -- -- Okay that's the slaughter she correct yeah Netflix squatters -- it.
For those of you who were -- in the seventies this is similar to when people should meet up telephone poles to steal cable.
I don't know anybody who did that my brother but.
-- that is what we're talking about here right -- -- it's exactly right and roughly 96%.
Youth and -- don't think it's wrong we're really don't care.
-- pay 80% sharing.
I would assume that's a lot of -- -- there -- what else did you find out about say for example the price that it costs for Netflix colonials don't tend to have.
That much discretionary income correct.
Right and so you know we -- ask -- a number of different questions like what would they do.
If they get a job.
And what would they view of Netflix lowered prices and what would they do if Netflix raise prices and we kinda see.
That the you know the -- -- the city.
Of Netflix is not really in the company -- -- an -- 599 a month they wouldn't pay for that what happens if the price jumped.
The price jumped I I think it's it's going to be very much predicated on.
And the content offering so if the price is going up.
And and the book and we have and continue -- -- to get in like we've been having couple weeks ago Time Warner.
And MGM pulled to 200 movies I last night Netflix Nickelodeon called much contact so if the -- -- through.
This giving you less and they're asking for more what we we think.
Did these millennial kid's gonna pursue other options because you know they really act the -- -- and -- And go from venue to venue like they know they were all on FaceBook last year well you know next -- that could be on Amazon and -- -- -- -- only Intel YouTube frank attitude -- really really well.
In our in -- question a --
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