Netflix Is Immune to Rising Gas Prices

Things are good at Netflix. Despite a deteriorating DVD rental market, rising gas prices and a glum economic environment, the company expects DVD mail rentals to grow for the next five to ten years.Netflix posted a tidy profit of $26.6 million, or 42 cents per share, for the second quarter, ahead of Wall Street's expectations for earnings 40 cents per share. Meanwhile, other web-based businesses (well, Google) have given investors cause for concern. No doubt, one reason for its upbeat outlook must be the fact that Netflix is almost entirely unaffected by gas prices. If anything, it's poised to benefit as increasing number of Americans cut back on gas expenses by staying at home and watching movies. "There's no obvious correlation between the cost of gasoline and Netflix' expense structure," says Derek Brown, an analyst at... [read full story]