Featured Post

Latest Gold News

Weak dollar, equities supporting gold Trump remains unimpressed with NAFTA   Business cycle winding down says Wall Street banks Klon...

Wednesday, December 22, 2010

Netflix (Nasdaq:NFLX) Negatively Impacted by Net Neutrality

Although it's highly unlikely net neutrality will remain in place over a period of time, as it's already been talked about as being repealed, until it is repealed, it will weigh on Netflix (Nasdaq:NFLX) in a negative way.

Citing a hypothetical 50-60 gigabyte cap, Netflix's value would change in the minds of consumers. Goldman Sachs (NYSE:GS) noted that "(1) in most homes, multiple people share a broadband connection (and usage cap) and (2) we estimate that the average streaming account on Netflix currently streams between 12 and 20 hours per month (using 12 to 20 GB per month)."

Ultimately it'll come down to how broadband providers will respond with pricing and how that would be passed on to consumers by Netflix.

Netflix was trading at $186.90, up $0.66, or 0.35 percent, as of 12:05 PM EST.

No comments: