The share market is down, Google’s stock aren’t performing like they once did, and the same goes for many other tech companies.

But one in particular seems to be doing alright – Netflix (NFLX).

Since Dec 08, most stock indices have fallen 20% (look at S&P and NASDAQ in above graph). However, if you look at performance of Netflix’s stock price, it stays straight on top – in fact, it grew 50%.

How did they do it? Is it just the best time for their sales to grown? 

Let’s first talk about who and what Netflix does. Back in 1998, founder and CEO, Reed Hasting had an overdue “Apollo 13″ cassette (yes, I said cassette!!). He owed the video rental store $40 for late payment as he had also misplaced the cassette. As he walked to the gym, Reed realised that a gym has a much better model. You pay $x a month, but the gym doesn’t care how much or how less you use their facilities.

He then took that model online for the video rental business and called it Netflix. Based on your subscription with Netflix (usually a flat monthly fee), you create a rental queue. Netflix will mail you the first DVD along with a prepaid envelope. When you’re done with the DVD, you mail it back in the prepaid envelope and they send you the next movie from your queue. Some subscription models allow up to multiple DVDs at time and some with a limit of exchanges per month.

Given this time of economic downturn, most people prefer to have a budget monthly expense with no more or less to pay. A fixed price of US$8.99 per month to have 1 DVD at a time with no exchange limit is a great way to save costs. Saves taking the whole family out to the movies – not to forget those ridiculously priced popcorn and coke.

So, over time subscribers have dramatically grown, and hence their stock climbs further.

Question is – how long will it take for major video rentals stores to move to the same model? 

In Australia, Telstra’s Big Pond Movies seem to have a similar model in place – ranging from AUD9.95 to AUD29.95 per month. 

Not bad Telstra, but I wonder how many subscribers you’ve got – and whether your stock price can jump 50%?

A survey held by Morgan Stanley shows that in the US during Q4, 300,000 Android phones were sold while Apple sold 1.75 million iPhones. That’s about 6 iPhones to 1 Android.

Now while Google still has to play catch up, the above figures are only based on two of its mobile manufacturing partners – HTC & T-Mobile. Soon enough we should see Motorola, LG, Sony Ericsson et al.

Surprising figures? Not really. iPhone always had an edge over Google’s acquired Android. Best network operator (AT&T rated 1, while T-Mobile rated at 4), better user experience, better multimedia and even better software.

And software is the key point here – the infamous App Store. That’s Apple’s additional revenue model. For Google? It’s not about selling their Android platform – no no no, it’s about making it easier to get it’s users to use Google services to then see (and hopefully click) on their ads.

Does that mean once we have more manufacturers using Android, we may see a sizable increase in revenue for Google? Unknown…

Don’t forget Google can still be accessed on the iPhone. I mean, I use them when I do a web search on my phone, but do I click on their ads? Well, not really.

So where does Microsoft fit in all this? Recently, they have announced that along with the next version of Windows Mobile, they will also release – guess what – an app store!

It’s called the “SkyMarket”. And along with SkyMarket, Microsoft will also launch “SkyBox” (similar to MobileMe to sync emails, contacts, and other data) and “SkyLine” – similar to SkyBox, but for small businesses.

Now, I’m assuming that the SkyBox will be free (or peanuts) unless they plan to make it work for non Windows devices – like a Nokia N95, iPhone or Android for that matter.

However, all this has been done – it’s not cutting edge. What we’re seeing is a company following the footpaths of the successful ones.

Still, Apple is holding it’s ground pretty well.

Seems like a repeat of Enron has struck in India – dropping the Indian share market by approx 7%.

Satyam (which in India means “Truth”) released information that over the past few years the company’s profits were over-inflated. In fact, nearly US$1 billion in the company’s book is fictitious – summing up to nearly 95% of the company’s cash.

Founder and Chairman, Ramalinga Raju said that none of the other board members were aware of this fraud. He said “it was like riding a tiger, not knowing how to get off without being eaten”. He will be facing some legal action and says that he is prepared for it.

Some say more companies will soon unfold as people believe that similar companies have inflated their profits. PriceWaterhouseCoopers, are the auditors for Satyam and had nothing to say about this matter.

With this recent event, it is unlikely that people will continue to outsource to India and further investments in this country will be thought about twice. It also questions the corporate governance in their lack of scrutiny on this matter.

With the way India works in terms of it’s bribery and false release of public information – I’m not surprised that they have gone this far. But I do wonder why they eventually cracked.

Satyam share prices dropped nearly 80% after the above information was released.