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Message from discussion Question - Wny does Netflix have an inverse relation with the market?
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Rhizomatic  
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 More options Oct 22 2009, 8:21 am
From: Rhizomatic <rhizoma...@gmail.com>
Date: Thu, 22 Oct 2009 05:21:29 -0700 (PDT)
Local: Thurs, Oct 22 2009 8:21 am
Subject: Re: Question - Wny does Netflix have an inverse relation with the market?
My theory is that Netflix is kind of in a counter cyclical business.

When the market is up and times are good people have more disposable
income and see more movies in the theater, go out for dinner and
entertainment, etc. When times are bad or recessionary people tend to
stay at home, eat at home, etc. But people still want entertainment.
So services like Netflix become more attractive and mainstream. Plus
the very fact that it is delivered is important. There is gas and fuel
savings.

Now the other thing about this, is that I don't believe people are
explicitly economical in their thinking. Meaning that they don't
produce a chart and map the marginal cost of netflix vs a dinner and a
movie. But subconsciously it is there in the habits and behaviors and
so Netflix like businesses seem to express a certain degree of counter
cyclical behavior.

The interesting question is will people who joined netflix during
recessionary times start canceling accounts when the economy and
market improves? Perhaps, perhaps not.

On Sep 23, 11:53 am, Huzi <huzefamamo...@gmail.com> wrote:

> Why does Netflix have an inverse co-relation with the market? Do
> people watch more movies when the market drops???


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