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Netflix Inc. (NFLX) Misses the Big Picture: Inc. (AMZN), Apple Inc. (AAPL)

So, “Argo” received the coveted Oscar for Best Picture. Hey, if you missed the flick while it was in theaters, you might want to check it out, right? Don’t look to Netflix Inc. (NASDAQ:NFLX)‘s streaming service for it. I already looked — it isn’t there yet.

Fear not, if you’re desperate to see the movie. If you go to Inc. (NASDAQ:AMZN)‘s Prime service, you can rent “Argo” via streaming for $3.99. If you’d rather use Apple Inc. (NASDAQ:AAPL)‘s iTunes, you can rent it for $4.99.

Netflix, Inc. (NASDAQ:NFLX)Could investors, analysts, and other interested parties please acknowledge why the frequency in which Netflix’s entertainment options are simply MIA is a major problem for Netflix Inc. (NASDAQ:NFLX)’s future?

Queuing up disappointments
I’m one of the subscribers signed up for Netflix’s streaming-only service, and I’m personally pretty frustrated. I hardly use the service anymore. Every time in recent memory that I have looked for some movie that’s relatively new that I’d really like to watch, I’ve ended up disappointed. I’ve ended up simply renting the movies and occasionally TV show seasons such as “Dexter” from (gasp).

Maybe I have quirky taste and my feeling here is way too anecdotal. However, I simply don’t believe I’m in a minority of frustrated Netflix subscribers. Add up the rental fees to instantly watch what you want to see now through other services, and there’s a point where the Netflix Inc. (NASDAQ:NFLX) streaming service simply doesn’t make economic sense anymore, especially when there are so many other areas vying for our time and attention.

A giant queue of second-string programming sure isn’t going to help Netflix. What used to be a wonderful selection of high-quality and more obscure, artsier fare when Netflix was a DVD-rental giant has deteriorated into what feels like mostly a collection of antiques and also-rans.

What did Netflix Inc. (NASDAQ:NFLX) recommend as a consolation prize for its lack of instant “Argo”? It offered up “House of Cards” (granted, putting out its own programming is one good idea the company has had). However, it also served up a variety of films that members are supposedly streaming instead of their first choice, “Argo:” “Barfi!,” “Heroine,” and “Seal Team Six.” I can’t say I have heard of any of those, and even if they’re perfectly fine, underrated sleeper movies they’re a far cry from the one that won Best Picture at the Oscars.

New Houses and Sesame Street aren’t enough
Netflix does have original programming such as “House of Cards” (which I have heard is good ). Netflix also recently penned agreements with Disney and, more recently, DreamWorks Animation (NASDAQ:DWA) , the latter of which will provide an exclusive show called “Turbo F.A.S.T.” Both of these agreements will probably make kids (and parents) happy and add some goodwill for Netflix, but I don’t buy that these are suitable grounds to believe Netflix’s day has been saved.

Take Amazon’s recent deal with CBS , through which it will offer episodes of “Under the Dome” mere days after broadcast. Talk about instant gratification.

Services from such heavyweights as Inc. (NASDAQ:AMZN) and Apple are stealing Netflix’s bread and butter, basically. The irony is that they’ve got many more tricks up their sleeves product-wise than Netflix’s one-trick pony, so destroying Netflix Inc. (NASDAQ:NFLX) may be like swatting an annoying fly for them. This is particularly true in Inc. (NASDAQ:AMZN)’s case, since its streaming service comes as part of the Amazon Prime membership. In other words, it’s just another nice perk to add Prime members into its ecosystem.

Meanwhile, Netflix simply keeps disappointing. This was once a company that rated incredibly high on user satisfaction. According to a major Consumer Reports survey last summer, although Netflix still enjoyed a large number of subscribers, user satisfaction dragged behind six other rivals. Pathetically, this list even included Wal-Mart (NYSE:WMT)‘s Hudu (who?). Ouch.

Show’s over for Netflix Inc. (NASDAQ:NFLX)
If you’re looking for a cheap growth stock, buy Apple. Despite relentless buzz about business threats, Apple Inc. (NASDAQ:AAPL)’s share price has been ridiculously beaten down and the Apple brand and product selection are a long way from broken. Maybe the company won’t be quite what it used to be, but the stock having fallen 20% in the last 12 months is simply absurd.

If you’re looking for a contrarian play, go for Inc (NASDAQ:AMZN). Many will tell you it’s overvalued, but brushing at Netflix like a fly is just one example of how many ways this company is building insanely ironclad competitive advantage and helping itself to many, many other companies’ businesses.

Regardless of what the “smart money” seems to be saying right now, avoid Netflix Inc. (NASDAQ:NFLX). It is terribly overvalued now. Those who bought shares at their lows should take the money and run. Given the major disappointments Netflix now consistently deals to customers in the real world — as opposed to investors’ theoretical numerical scenarios and misguided views of what a “value” is — the show’s over, folks.

The article Netflix Misses the Big Picture originally appeared on

Alyce Lomax has no position in any stocks mentioned. The Motley Fool recommends, Apple, DreamWorks Animation, Netflix, and Walt Disney (NYSE:DIS). It owns shares of, Apple, Netflix, and Walt Disney.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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