This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Netflix Needs a Celebrity Spokesperson

But, it is what it is. We live in a pretty cruel society. People feel as if they are entitled to $7.99 Netflix. If somebody messes with that, look the bleep out.

But, as I noted in last week's article, Netflix has no choice but to "mess with it." It cannot proceed aggressively and ameliorate concerns over $5 billion in off-balance sheet obligations without more cash. Going to Wall Street or Silicon Valley for the funds will only raise more red flags.

Netflix faces a classic decision. It needs to increase revenue so it can continue to spend. Because if you want growth, you have to spend.

Hastings cannot be anywhere near a microphone or camera when the time comes to make a move. Give CFO David Wells a script, make him sign something that says he won't say anything stupid and send him to the analyst conferences and such. In dealing with the public, however, hire some people who know what they're doing.

At the same time as Netflix adds value to its service, it should also add a limited and relevant e-commerce component to help drive revenue. This coincides with the sale of DVD and another price increase.

The whole thing rolls out methodically with a celebrity spokesperson everybody loves. I'm not sure who that should be because I do not know Netflix's demo as well as Reed Hastings does. But the new "face of Netflix" needs to be somebody you just cannot say no to.

Whoever makes the announcement -- and there absolutely needs to be one before 2013 is out -- it cannot be the blunt and arrogant one-sided affair we saw last year. If you're raising the price on an entitled bunch, you absolutely have to give them something they did not have prior to the increase.

Most importantly, they can't feel like they want to shoot the messenger upon hearing the news.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Rocco Pendola is a private investor with nearly 20 years experience in various forms of media, ranging from radio to print. His work has appeared in academic journals as well as dozens of online and offline publications. He uses his broad experience to help inform his coverage of the stock market, primarily in the technology, Internet and new media spaces. He has taken a long-term approach to investing, focusing on dividend-paying stocks, since he opened his first account as a teenager. Pendola, 37, is based in Santa Monica, Calif., where he lives with his wife and child.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ZNGA $2.45 0.00%
NFLX $571.55 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs