Netflix CEO Reed Hastings: Americans are Self Absorbed

Classic! Sorry I cannot disagree with his sentiment, although he is busy apologizing today…. speaking of which I already forgot what Reed said as Dancing with the Stars and NFL Football soon approach: What’s this “Canada” you speak about? If it’s not red, white, or blue it is dead to me.

Netflix is expanding into Canada. And, rather than paying $8.99 a month, our neighbors to the north will be charged $7.99.

The Hollywood Reporter: Are you concerned that American Netflix subscribers will look north and ask for the same discount Canadians get at $7.99?

Reed Hastings: How much has it been your experience that Americans follow what happens in the world? It’s something we’ll monitor, but Americans are somewhat self-absorbed.

While I understand as CEO he has to be politically correct my retort today would have been “I stand by what I said, do you realize what these Americans pay in drug costs versus every other 1st world country on Earth?? Sometimes 50, 100, 300x as much… all I am asking is an extra $1 a month! I should be lauded for my generosity.”

Just imagine how high NFLX would be if Reed had charged the (huge) Canadian market the same price. Gosh that might be worth at least another $500,000 a year…slap a 6000 PE on it… worth at least $30 more in stock price. Hewlett Packard better hurry up and buy NFLX before it expands into Costa Rica.

Disclosure: Long (tiny) Netflix in fund; no personal position

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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