Dronamraju Ravi Prakash

Netflix (NFLX) came out with an announcement about it's subscriber numbers prior to it's earnings announcement. First of all, i never understood why they don't release this number with their earnings report. Because you can essentially figure out the revs from this number. Looks like they are going to stop this "pre-announcements" from next quarter.

They are 2.23M subscribers at the end of September. This is a solid growth from the last year's levels. However, i think the subscriber growth numbers are going to slowdown from here onwards. We can already see sequential growth slowing down and cost of customer acquisition increasing.

With a market valuation of 950M, Netflix's customers are worth 426$ a pop. Is that too high? too low?