Netflix's Brush With Death

Updated

Netflix's CEO Reed Hastings may be celebrating the company's strong results lately, but he also recently shared his thoughts on just how close the company came to losing it all. Thanks to a big price hike and ill-fated attempt to split off the DVD business, Hastings said that the company didn't have the resources back then to survive one more big slip-up.

But is Netflix in a similar position today? In the video below, Fool contributor Demitrios Kalogeropoulos argues that the video streamer is in a much stronger place now. And while Netflix hasn't completely earned back the trust of its members, it has recovered from those past mistakes.


The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

The article Netflix's Brush With Death originally appeared on Fool.com.

Fool contributor Demitrios Kalogeropoulos owns shares of Netflix. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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