After seeing that the big players are coming out with there online renting version I don't see such a bright future with GZFX. They can advertise more and have a reputable past. I don'tr know those are just my thoughts.
I do not understand. the site is working well and yet where is the momentum on this stock. Hope tomoorow is a green day. Usually, friday is good for gzfx.
Posts: 864 | Registered: Jun 2004
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quote:Originally posted by BDUBS07: After seeing that the big players are coming out with there online renting version I don't see such a bright future with GZFX. They can advertise more and have a reputable past. I don'tr know those are just my thoughts.
Ouch. Death knell perhaps?
Man, I had high hopes for these guys, but with Blockbuster getting in on the act, it may be too little too late.
I must confess, I am still teetering. I really want to take the next ride up with GZFX, but I'm a bit more trepidatious than before seeing this Blockbuster beta.
Does anyone else have some decent analysis that isn't hype or bashing? Anyone in the industry perhaps?
Blockbuster sure did one thing. They validated GZFX business plan with one fell swoop. I'ld have been worried if they didn't get in this market. That would have meant it wasn't lucritive enough. Smart money should read Blockbusters move as a buy signal for GZFX.
Netflix is down -5.20. This is interesting reading:. Maybe we're getting some of NFLX's subscribers.
Netflix, Inc. (NASDAQ NM: NFLX) Last Update: 7:50:00 PM ET Jul 15, 2004
Herb Greenberg Burning and churning at Netflix
By Herb Greenberg, CBS MarketWatch.com
Commentary: Customer defections on the rise
SAN DIEGO (CBS.MW) -- Netflix's second quarter earnings miss was the least of its problems. A bigger issue, which has been the focus of recent columns here and in Herb Greenberg's RealityCheck, was a rise in the number of subscribers who quit, also known as churn.
The source of those columns, money manager Eric Von der Porten of Leeward Investments, concedes that "the company continues to do a fabulous job of attracting new subscribers."
But he quickly adds, "Churn continues to be very high." That's true regardless of whether you use his calculation or the company's. It's higher, however, using his, which he believes are more realistic than those used by Netflix (NFLX).
According to Netflix's method of counting, which includes new subscribers and then divides each quarter by three, churn in the quarter per month was an average of 5.6 percent, up from 4.7 percent in the first quarter. According to Eric's calculation, true churn actually rose to 7 percent, up from 6 percent the prior quarter. That represents "an annualized rate of 84 percent per year -- turning over nearly the entire subscriber base," Eric says. (His calculation is based on 422,000 lost subscribers which equals 141,000 lost per month divided by an average subscriber count of 2.01 million.)
The company says the churn rose because of the 10 percent price increase in June. "However," Eric counters, "Netflix expects its churn rate to remain high." (Actually, as with most of its forecasts, you can drive a truck through the range given for its churn estimates, but I digress...)
One impact of the high churn, notes Eric, is subscriber acquisition costs, which includes advertising and other forms of attracting new customers. They were $35 per subscriber last quarter, up from $30 a year ago. Guidance for the third quarter is $37 to $39, higher than originally forecast. "Netflix would be growing much faster and would be far more profitable if it wasn't churning its customers so fast and having to spend so much money to replace the ones who cancel," Eric says.
All of which goes to prove what broker and longtime Netflix critic Sandy Brasher of the brokerage firm of Rice Voelker has been quoted saying here numerous times: The more business Netflix does, the less money it makes.
And this note to those who may be wondering: No, Netflix never did get back to me on questions raised here a month regarding issues raised by Eric
I dont understand why gzfx bashing when it probably is the best penny around. JMO.
From another board...
blockbuster does not plan on entering the online market until early next year. they may have a beta site, but they are not prepared to launch because they have a fundamentally different business model. blockbuster is a brick and mortar video/game rental chain. the reason blockbuster is in trouble right now has to do with the fact that they raised their late fees when the cost of operating all of their stores cut into their profit margin and they drove many of their loyal customers to local video/game rental stores, supermarkets, or just about anyone else who had a profitable business and could facilitate adding video and games to their current operation. what emerged was a fragmentation of the video and game rental market which led to the rise of netflix and others in the online industry. the problem blockbuster has now has to do the fact that their current business model stands in stark contrast to that of an online rental company. it is a 'catch 22'. if they draw people to their online site, they will be using their brand to summon these people to the online version of blockbuster and that is a problem because as they draw people away from their stores, losses will mount in their stores all over the country and the most they can do is react to it by closing stores and laying off workers. first, that doesn't go over well with the public. second, it's reactive, so they could actually create huge losses for the company by launching the online version. beyond those obvious problems, blockbuster's most direct competition is netflix which is a company that was built on the mistakes that blockbuster has made. many industry analysts think that this could be the end for blockbuster because there does not seem to be any good way to get out of their current dilemma. btw, have you been watching blockbuster vs. netflix on cnbc? if i had to make a choice between the two, i'll go with netflix.. that is, the company without thousands of stores and employees and no way to pay for any of it.
GameZnFlix, Inc. Welcomes New Chief Financial Officer
FRANKLIN, Ky., Jul 16, 2004 /PRNewswire-FirstCall via COMTEX/ -- GameZnFlix, Inc. (GZFX) announces Mr. Arthur de Joya, CPA, has joined the company to serve as its Chief Financial Officer.
Mr. de Joya has over 12 years of experience in both public and private accounting, mainly working with publicly traded companies. Mr. de Joya's experience includes having served as a chief financial officer for a publicly traded mining company. Mr. de Joya's experience in public accounting was partner-in-charge of the audit practice for L.L. Bradford & Company, LLC (8th largest accounting firm in the Las Vegas area) for approximately 5 years.
Prior to L.L. Bradford & Company, LLC, Mr. de Joya was employed with KPMG LLP working with many large publicly traded companies.
Mr. de Joya received his B.S. in B.A. from the University of Nevada, Las Vegas and is a Certified Public Accountant licensed in the State of Nevada. He is a member of the American Institute of Certified Public Accountants, Nevada Society of Certified Public Accountants and Public Company Accounting Oversight Broad.
Within the last two years, Mr. de Joya has assisted two companies in completing their registrations with the Securities and Exchange Commission for the purpose of raising capital. Additionally, Mr. de Joya serves as a director for several non-profit organizations, been a featured guest columnist with "In Business Las Vegas", and named in the "Who's Who" of "In Business Las Vegas".
John Fleming, CEO/President of GameZnFlix, Inc. stated, "By expanding the management team at GameZnFlix to include Mr. de Joya the company has reached another of its mile stones. Arthur comes to us with the business background to help lead the company towards the future."
GameZnFlix, Inc. (GZFX), is a company that offers both DVD movies/video game rentals on the Internet with access to over 28,000 games and movie titles. Beginning at $18.50 a month subscribers can rent a combination of both DVD movies and/or games with no late fees or due dates. The Company's version 2.0 website offers its subscribers the option to purchase both DVD movies and video games along with the continued rental program.
quote:Originally posted by Meshoe45: Earnings down, read the news symbol is NFLX
NFLX is now down 25% today. I am sure it is because of the price increase and now they have increased their expenses with the extra advertiseing so it is going to effect their bottom line. This is a case of too big too fast when there are wolves at the door.
quote:Originally posted by realityinc21: MAKING A NICE MOVE TODAY--GREAT DD AND POSTS
I PICKED UP MORE IN THE HIGH .07'S..
Nice buy in today Diana. I have been swing tradeing a portion of my holdings in GZFX about 25%. The rest I am holding for the longer run. Being s small time investor my funds are limited but I have done OK and the time seems to be good to anticipate the spirts of GZFX.
I'm kind of suprirsed by the past couple of weeks and how GZFX's price has gone down. But I think looking from the chart it is poised to go up. I wish i would have sold at .17 and day traded it. Maybe the summer just isn't the best time to be in pennys.
Posts: 26 | Registered: Dec 2003
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I just realized this morning that if GZFX continues to steadily perform at the daily rate it has since the new website came out and all the improvements/adjustments made, in 22 days GZFX will become a true "penny stock" in every literal sense of the word. That's not so exciting, is it?? Not bashing, just cold numbers.......we're in the tank big-time, also. Been in since PGHI. Not too concerned with what happens to Netflix and Blockbuster, don't have any money on either of them.......
Posts: 36 | From: Raleigh, NC, USA | Registered: Jun 2004
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I still don't understand why they have not tooken 10 minutes to fix some simple html links on their site. There is many links that are using invalid syntax and need to be corrected. Does any body have a phone number to the office or maybe a tech dept? Give me the dang FTP info and I will fix the site myself! Seriously, I don't understand what they are doing. I'm sure some people signed up just to rent Ps2 or GameCube games, unfortunatly, you can't browse them. Ive pointed out the error and fix numerous times. Who the h*ll is coding this site? Why are they so inferior? I have alot of money in these guys, I'm still going to hold, but if they don't hire a non elementry school lvl programmer. I may have to drop it.
I would be willing to code this site for free.
If anyone has contact for gzfx please let me know.
research von STOCKWIRE over GZFX from today!!!
GamezNFlix, Inc. is an online DVD and video game rental business operating through its Website, www.gameznflix.com, and the Website of its subsidiary VeeGeeZ.com, LLC (VeeGeeZ), www.veegeez.com.
The Company has an internally developed software that allows it to customize its Website for each subscriber currently and in the future.
As of December 31, 2003, GamezNFlix only provided rental services to its subscribers. The Company was originally formed the name SyCo Comics and Distribution Inc. The Company changed its name to Syconet.com, Inc. in 1999, and to Point Group Holdings, Incorporated in 2002. On January 26, 2004, the name of the company was changed to GamezNFlix, Inc.
They have access to over 28,000 games and movie titles. At $18.50 a month, Gameznflix subscribers can rent a combination of both DVD Movies and/or games for playstation2, XBOX, Nintendo etc. There are no due dates or late fees. Both the games and movies are delivered directly to the subscriber’s address by mail with a return postage paid envelope from both east and west coast distribution centers. Their " no late fees, no due dates" online movie rental model has eliminated the hassle involved in choosing, renting and returning movies.
After announcing a new relationship on March 2, 2004 with Ingram Entertainment, they will make an attempt to be the largest online movie and game rental company on the web. Their subscriber base is growing at a rate of anywhere from 20% to 40% per month.
product and services
GameznFlix offers both DVD movie and video game rental services to its subscribers. Members can choose from rental packages of 3 -6 titles outstanding at one time on a monthly subscription basis. Plans are priced at $18.50 for 3 titles package and increase by $5.00 for each package.
Customers can choose from rental packages of 3 - 6 games outstanding on a monthly subscription basis with unlimited replacement of products as long as they are active subscribers. Plans are priced at $18.50 for the 3 game package and increases by $5 for each package.
In March, 2004, the Registrant signed a supply agreement with a national entertainment distributor. The supply agreement is designed to enable the Company to access the most current DVD and video game titles for purposes of meeting rental requests. GameznFlix, through its website, www.gameznflix.com, and its subsidiary VeeGeeZ, www.veegeez.com, is an on-line DVD and video game rental business. GameznFlix's service is an alternative to store based gaming rentals that offers a high level of customer service, quality titles, and product availability.
Management believes that GameznFlix is in a good position to take advantage of the following market conditions:
- Start-up opportunities exist in the on-line video game rental business.
- The need for use of efficient distribution and financial methods.
- Under-served market that has growth opportunity.
- Existing video game rental companies' uneven track record in providing customer service.
GameznFlix's internally developed software enables the company to customize its website for each subscriber currently and in the future. Since the company's software is internally developed, the website is easily changed and expanded to meet customer needs and provide vital business information. GameznFlix's online interface with customers eliminates the need for costly retail outlets and allows it to serve a national customer base with low overhead costs.
GameznFlix currently only provides rental services to its subscribers. Plans are in place to expand and provide sales of used as well as new video game titles at a discounted price. The development of this portion of the website is nearly completed. Management believes by adding these additional services the company will be able to complement its rental service by increasing cash flow and capitalizing on impulse sales to its current subscribers. Additionally, GameznFlix plans to decrease the delivery time and increase our game library utilization by utilizing low-cost, strategic regional distribution centers.
VeeGeeZ seeks to provide its customers with a large selection of video game rental choices on a monthly subscription basis. Customers can sign-up via the web page to rent video games of their choice. The games are then shipped to the customer via first class mail once they have made their selection(s). Active subscribers can retain the games for an indefinite amount of time as long as they are active paying subscribers. Customers can exchange their selections at anytime by returning their game(s) in the pre-addressed package provided.
John Fleming, President & CEO
John Fleming, currently President of Point Group, has a long history of working with emerging, public and private companies, and is well versed in the nuances and specifics involved in the financing and fund raising arenas. Before founding AmCorp Group, Inc., the professional consulting company that became Point Group's initial subsidiary, John served as managing partner of AFI Capital a San Diego based venture capital firm–for a five year stretch. Prior to AFI, John managed Fleming & Associates, a business-consulting firm that provided services to companies looking to create business plans and/or review current plans in order to move forward with fund raising from both private and public sectors.
Mark Crist, Director
Mark Crist, a key figure in the management team of Point Group, enjoys a diverse background going back over 24 years. Most recently, Mark held the position of CEO and President GamesGalore.com from 1996 to 2001, a company that among other things supplies trivia contest content to users of America Online. The company's live, chat room format games have proven to be one of the most popular features of the AOL service according to a survey of members. Since May of 2001, Mark has served as president and director of Diamond Hitts Production, Inc. (pink-sheetsHTT)
Matt Sawaqed, Vice President & Director
Matt Sawaqed started his management career in 1980 overseas with GAFCO (a division of Northrop Corp.). His extensive career includes executive positions at Dynamic Time International, a watch company out of Switzerland, KENT North America, a confectionary products company, and with Magnasoft, Inc., a mobile asset-management software company. Since 2001, Matt has served on the board, and later as CEO of Mytee Products, Inc., where he was responsible for 35% increase in revenues, and a 9% increase in profits.
Lance Wiseman, CIO of VeeGeeZ.com
Lance Wiseman: 33 years old, has worked in the highly technical field of post-production of television shows, cartoons and movies for the past 8 years. He is the recipient of the Golden Reel award and was nominated in 2002 for an Emmy award for his work on a popular syndicated television show.
Mark Wiseman, COO of VeeGeeZ.com
Mark Wiseman: 30 years old, worked for Arthur Andersen's Auditing division for 4 years and the Business Consulting Financial Process Improvement division for 3 years. Mark served as project manager for various private and public companies in varying industries to assist in analyzing and improving their business processes. Mark holds an undergraduate degree in Accounting from Indiana University.
Currently there are approximately 12 direct competitors that provide online video game rentals. Some of their competitors include AngelGamer.com, DVDAvenue.com, Gamez2go.com, Govojo.com, Midwest-games.com, RedOctane.com, Rent-a-realm.com, Gamefly.com, and Videogamealley.com. Each of these competitors offers rental packages on a monthly subscription basis with offerings of one to eight games available at varying prices.
GamezNFlix’s key advantage compared to its competitors is that the company offers more comprehensive customer service. GamezNFlix is one of a few on-line video game rental sites that offers a toll free customer service phone number 12 htheirs a day, six days a week. The company also takes customer inquiries and requests via its e-mail address and maintain a policy to answer each e-mail within 6 hours.
Another competitive advantage is, in the opinion of management, better product availability and product availability information. Management has observed that one of the main reasons subscribers decide on which service to purchase is the availability of games. Many sites do not have many games in stock for rental on any given day and many require a wait period of up to 15 days to receive a popular game title. GamezNFlix constantly monitors its inventory versus customer demand using automated reporting to continually update the inventory. In addition, many of the competitors do not allow customers to easily see what games are in stock. GamezNFlix allows customers to see if an individual game is in stock and provide a total percentage of games that are in stock prominently on its website.
GamezNFlix's proprietary queue system and dynamic web server based database system also allows the company to offer customers a more error proof system than some of its competitors due to the lack of manual processes needed to manage the business. The company has its system automatically select the next game a customer receives based on factors such as the subscriber's next game preferences, game availability, length of time a subscriber has been with us, and the subscriber's subscription plan level. To date, GameZnFlix has achieved in excess of 90% accuracy rate for shipping titles to its subscribers.
This system also allows customers the option of putting a " hold" on games for up to five days if a game title is not available when a customer's returned game or games is received. Management believes that none of its competitors offer this feature. The " hold" can be used to wait for a game that has been released already, but is out of stock or to wait for a future release title. This option allows customers to have control over which title they will receive, rather than just receiving the next available game in their queue.
What every company faces, is competition. The market for on-line rental of DVD's and games is competitive and GamezNFlix expects competition to continue to increase. As competition increases, GamezNFlix will look for the edge to keep them above the rest. It is a fierce market with companies cutting wages to look to gain market share.
To be competitive, GamezNFlix believes that it must, among other things, invest resources in developing new services, improving its current services, and maintaining customer satisfaction.
The market for on-line rental is huge and in the next 5 years will see exploisive growth. Those who have established themsleves in this arena early on, their success will depend on the personal efforts and abilities of its senior management. If they are focused and are all on the same page, they will be the ones to lead the pack.
quote:Originally posted by thinkmoney: After announcing a new relationship on March 2, 2004 with Ingram Entertainment, they will make an attempt to be the largest online movie and game rental company on the web. Their subscriber base is growing at a rate of anywhere from 20% to 40% per month.
Can't wait to see those financials. 20%-40% per month is really good growth.
quit watching this one folks..it's a new company doing a fine job for it's future..imo this one is a winner and the dvd and movie rental business has enough growth for several good companies. The key here is advertising and gzfx shoes serious intent in that department..so relax !! i really feel that down the road this one will be a goodie.
Posts: 39 | From: Tampa Florida USA | Registered: Jun 2004
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