The DVD Rental Race Analyzed

Thomas Hawk writes "Netflix and Blockbuster have been locked in a price war with regards to the DVD rental space. Wedbush Morgan Equity Analyst Michael Pachter has a $3 dollar price target on Netflix and is in contrast bullish on Blockbuster. Davis Freeberg challenges Pachter's thinking that Netflix will be the loser in the DVD rental battle and Pachter himself responds back on his rationale on why he thinks Blockbuster has the advantage." From the article: "Irrespective of what Pachter thinks about the overall DVD rental business, Pachter's seemingly obvious prediction would appear pretty dire for Netflix. Pacther updated his price target for Netflix On 4/22/05 with the new $3 price. If Pachter is right, then we should expect to see Netflix's stock fall by approximately 75% over the next 12 months."

Comments

no no no....

[rayde]

every smart investor knows to skip these guys and just invest in the DVD+/-R manufacturing sector.

;-)

And the winner is... THE CUSTOMER!

[dpbsmith]

Yes, indeed, vibrant competition, the miracle of the marketplace, and Adam Smith's "invisible hand" ensure that by golly, no matter what happens, the customer will always win.

The only reason Blockbuster ever used to charge those late fees is because, gosh, it's what customers wanted. And now that customers want something different, Blockbuster is responding to demand.

You can look forward to a ever-brighter future of more and more choice, lower prices, and, of course, better movies.

Because... everything is for the best in this best of all possible worlds.