Shut Fox Down

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Transcript by Newsy: http://www.youtube.com/user/NewsyBusiness?feature=guide BY DAVID EARL Popular movie subscription service Netflix took a walloping on Wall Street in after-hours trading Monday. But, should it have? Here's Fox Business with the headline. "Netflix shares are under pressure following its first quarter earnings report. The company posting a narrower-than-expected loss of 8 cents a share." The shares were actually down 16 percent in after-hours trading. Some analysts say the news from Netflix on Monday shouldn't have precipitated a sell off. It beat the street. But TIME points out not all things are based on stats... "Netflix's 16% after-hours swoon is really being driven by emotional factors, as increasingly nervous shareholders seem to be losing patience with the company's stalling growth and rocky transition from DVD rentals to video streaming." And it's not just traders who are ticked off at Netflix ... CNBC analysts aren't happy with the company either. "It comes down to one thing and that is content, everybody is ideally focusing on creating their own content, the dilemma of Netflix is that they are actually just distributing other people's media content." Businessweek says the CEO is touting the first quarter results .... and thinks Netflix is poised to get stronger. "[The Netflix CEO] predicted the company will add about 7 million streaming subscribers in the U.S. for all of 2012. That would be about the same number that Netflix attracted in 2010 -- the company's biggest growth year so far." But while the head of Netflix is painting a rosy picture of the company — CNET says it's just too good to be true. "Remember that 'virtuous cycle' [the CEO] crowed about the past two years? The formula went something like this: more titles = more subscribers = more revenue = more titles and back round again. All Netflix had to do to keep the wheel turning was continue writing checks for new films and TV shows. But licensing costs have gone through the roof." Netflix recently failed to renew its license with Starz — which provided Netflix with films from Disney and Sony Pictures. Add to that — HBO and Xfinity recently launched their own streaming service.