NetFlix: DVD Company in a Broadband World?

OK, so Netflix has announced how they're doing as a business. As a consumer rather than a scholar, NetFlix has not garnered my attention. I'm not sure I know why. Yet many of my University of Georgia students seem to be subscribing and loving it. If you asked me how many NetFlix subscribers there were out of more than 100 million television household in the U.S., I would have guessed more subscribers than there are. During their recent conference call, NetFlix announced these figures:

Netflix Announces Q2 2006 Financial Results
Subscribers – 5.2 million
Revenue -- $239.4 million
GAAP Net Income - $16.8 million

OK, interesting, but more interesting were questions NetFlix was asked about getting into the digital download business, which would seem to be an absolute no brainer for a company like this. (Don't know who they are? See netflix.com).

As of today, July 25, 2006, the conference call may be heard at http://ir.netflix.com/eventdetail.cfm?EventID=27853.

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