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