Oh, how the mighty have fallen. Netflix, which once seemed untouchable, has announced that they are predicting losses for all of 2012. They are mainly attributing their losses to expanding service to the U.K. and Ireland, but a loss of subscribers following a public relations gaffe this summer is not helping.
However, if you are looking to invest in Netflix, now is the time. In order to raise some cash, the company is selling nearly 3 million shares of stock at $70 a piece – 6% below what the stock closed at on Tuesday. Netflix’s stock sold at a high of $298 per share in July.
Another key to Netflix financial issues is that the film studios are now realizing how much they can charge for streaming licenses. Whereas Netflix paid $180 million for licensing content in 2010, that bill will now reach somewhere around $2 billon in 2012.
Though there was some positive news coming out of Netflix this week; it was announced that they will air the long anticipated new episodes of Arrested Development in 2013.
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