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%?

Come November 19th and Microsoft will unleash it’s new Dashboard to all XBOX 360 consoles.

It is expected to be completely brand new and different to the existing “blade” theme that we current 360 gamers use. Microsoft names it “The New Xbox Experience“.

Users can create avatars to represent themselves when online (similar to the Wii). Like the screenshot below, users can choose a “base avatar” and customise it from there. It is assumed that new customisation features (like clothing & accessories) will be added on in the future to enable more variety.

The new Dashboard system apparently also loads the entire game on to the Hard Drive for quicker loading and play time (however, the original DVD must still be in the drive).

The new dashboard also connects to Netflix for video content (not sure if this will have limitation in certain countries).

Microsoft seems to geared this new Dashboard towards a social networking environment as well as pushing it’s Marketplace content. Both would be revenue streams for them.

Hopefully this system will take off by the most frequent 360 gamers, though be prepared for the usual criticism.