As Netflix shares crater following last night’s disappointing earnings report, it’s helpful to look at a bigger picture.  It’s easy to focus on subscriber growth that came in sharply below the company’s expectations (1.7 million versus guidance for 2.5 million) and that CEO Reed Hastings felt compelled to apologize for at the conclusion of the company’s earnings call.  Longer-term, however, the issue for Netflix isn’t subscriber “churn” that may or may not have been caused by “un-grandfathering” (old-time Netflix subscribers like myself have been gradually shifted to the company’s new $7.99/$9.99/$11.99 tiered pricing system,) rather it is the company’s continued cash bleed and extremely high level of spending budgeted for future content.

from Forbes – Tech http://ift.tt/29KB49K
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