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April 26, 2007

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Ricklogic

Funny thing about Netflix is that, on their own, they are, and have been, one of the very top advertisers for years on the Internet (usually in the top 3). The additional use of the sleazy lead-gen entities is a poor testament to Netflix's promise. If it is that hard to maintain growth, maybe the model has limited potential.

On their site and in articles, Netflix makes claims that large percentages (80%, 90%) of members come to them based on word-of-mouth. Seems like some disparity.

Kudos are due to Hastings for being the one to first effectively and powerfully mometize catalog films. But now, many entities are renting and selling catalog films. Even with the continuation of huge advertising, Netflix has projected zero net subscriber growth for the 2nd Quarter, 2007. There is a limit to everything.

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