Today NETFLIX reported 31.1 million subscribers. That is 31.1M people paying $7.99 per month for crappy and recorded content. Like their video on demand is crap, absolute crap, have you ever tried it? So realistically, people are really just paying for mail in videos? Some investors are enjoying the ride while they can, but not all trees grow to the sky. I'm betting some company with a better mousetrap is already waiting in the wings to knock them off their perch. The stock and many cable companies too, could all come crashing down. And it could already be in the works. It could just be a matter of a new technology play, a disruptive technology, a better mouse trap.
Alternatively, consider WhereverTV. They will charge between $5 and $40 per month for live streaming broadcast network channels. The programming will function like an app, therefore giving the subscriber portability across a wide range of devices. It will allow the user to personalize his selections and create a pre-selected channel guide or program guide. And it will allow him to integrate all of his viewing choices into this one app so that it all becomes easily accessible, manageable, and once again, portable. You take it with you like an iTunes account. Use it on your phone, use it on your laptop, use it with your big-screen TV. The $5 service currently offers over 300+ channels from around the world in a multitude of languages (or countries of origins). And people will have viewing choices to subscription packages in most languages and eventually from most countries, think about all that one stop shopping (and consolidation) for anyone who watches TV.
Now consider the financial rewards aspect of TVTV.....if only two hundred thousand subscribers sign up to receive (better than cable) an average price of subscription services, that will equal approximately $60-65+ million per year in revenue, and approximately $5M+ per month. Considering gross profits of nearly 60%, and net margins of 25-30%.....that should bring earnings in at approaching 50 cents per share. So now my friends, do the math on what multiple should TVTV get on those earnings? 10X earnings, 15X earnings, 20X earnings, 30X earnings, or even 50X earnings? My bet is at the higher end, but at the current prices, does 10X not pull in the mother load? Simply stated, this is why many are accumulating right here....right now.