Netflix to Hold Video Chat, Not Conference Call

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July 22 (Bloomberg) -- Wedbush Securities' Michael Pachter previews Netflix's earnings and discusses his outlook for the company with Cory Johnson on Bloomberg Television's "Bloomberg West" (Source: Bloomberg)

Predictions about the death of the company.

This is really weird but there do with the conference call.

Why are they doing this, what do you make of it?

I think having a journalist is not as a novel and different as having an analyst.

The weird part of it is that they picked somebody out of the crowd of netflix lubbers to moderate.

I think he is supposed to appear impartial, but it would be difficult for him to do that.

To enter your question, i think they are trying to turn their earnings call from a news event into a media event.

It is getting coverage by the very nature of the format of the call.

You are covered it more because they have a sell sign analyst, and one of your former colleagues as moderator.

We all find it odd.

In fact, it will stifle questions.

Someone who has a critical question cannot be sure if the question will be asked.

I have no problem with a journalist.

She does not have a recommendation on the shares, she will not leave the call and say go buy or sell netflix.

I do have a problem with one of my competitors excepting the assignment.

It does make him appear to be less impartial.

To be fair, rich greenfield does good work, has a buy rating on the stock, but he does need to justify to the people that trade through his firm.

And again, he has been right.

Props to him.

I have been wrong and i have no shortage of people that seek my opinion appearing with management is an implicit endorsement of management.

Rich has been explicit and what they're doing, so i do not think there is a conflict, i think there is just an appearance of impropriety.

Do you think the quality of the questions -- i want to get to the questions -- but will the question be worse?

I have a lot of respect for my competitors at other networks, but i wonder if a journalist can ask the same questions as a financial analyst, and will it be as tough?

I wrote in my review that i thought it would stifle the dialogue and discussion.

Julia reach out to me on friday to ask for questions and promised me that she would ask, so we will see.

I had four tough questions, so we will see.

Is there a pattern here with netflix of changing the goal posts, restricting information when it may offer in later on.

Other companies give less detailed informations.

Amazon is notorious.

Netflix gives out metrics that are convenient, and stop giving them out when there are no longer convenient, so we do not know about churn, the size of their streaming library.

So, yes, these are the guys that posted on facebook when they hit a billion hours of streaming, and they flaunted it, they let the sec, and investigate, and ultimately won.

I do not think there is a big wrong with a video conference call.

I think that is great.

Nothing even wrong with having a journalist there.

But it makes a partial analyst look bad, and it may stifle dialogue.

The guys that are looking to ask the questions are afraid that rich will keep a good questions out, or keep them for himself.

Normally, i do not have to ask for permission to ask a question.

No kidding.

Let's get to the tough questions.

What are some of the tough question you want answered?

I hate to blow it for julia, but i am asking about the disparity for net income and cash flow, and i want to know what the investment in streaming content is, when it turns around.

When is the duration of their investment?

Second, i calculate the gaap to be over $2 a share, so when do we hit the tps line?

How long does it take to get through the income statement?

I wonder how long we should expect free cash flow to continue.

Finally, i ask about the rights to their original content.

How long are those rights?

We all know that they do not own the content.

How long is the window to exploit it, what is the cost if they choose to extend the window, and is the renewal option exclusive?

Those are questions that they

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