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Netflix Would Like Very Much To Change The Channel

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Sep 5, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Netflix Would Like Very Much to Change the Channel - Businessweek (click for full article)

    By Nick Summers on September 04, 2012

    "Shares of Netflix closed down on Tuesday. Again. This time, it was due to the news that one of its exclusive suppliers of movie rights has signed on with Amazon's rival streaming-video service. Netflix (NFLX) shares fell $3.79 a share, or 6 percent, on Tuesday and have lost more than 80 percent of their value since hitting an all-time high just 13 months ago.


    By horning in on the Netflix supplier-Epix, a consortium that controls the rights to such hits as The Avengers and The Hunger Games-Amazon (AMZN) has just made Netflix's library a little less special and a little less worth subscribing to. Another contract with Starz went nonexclusive earlier this year. Analysts who are pessimistic about the Los Gatos, Calif., company see a bad trend in which Netflix's library of movies and TV shows gets gradually replicated by Amazon, Redbox Instant (CSTR), Hulu, iTunes (AAPL), and other video services.


    If the companies all offer similar content, the only way they can compete is on price, and Netflix-with no hardware sales or advertising revenue to rely on-would probably not fare well in that contest. A subscription to Amazon Prime costs $79 per year and includes free two-day shipping for the site's physical goods, while Netflix costs about $96.


    One way out of that death spiral is original programming. As I wrote in a Newsweek feature in May, Netflix is attempting to reinvent itself as the HBO of the Internet with five original series."
     
    Last edited: Sep 5, 2012
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    Netflix Faces A Tougher Road Ahead As Amazon Signs EPIX Deal - Forbes (click for full article)

    Trefis Team, Contributor

    "Netflix's stock fell more than 10% on Tuesday after EPIX announced its streaming partnership with Amazon. It was weak again in trading on Wednesday. According to the new deal, Amazon will get around 3,000 movie titles from EPIX, enhancing its streaming catalog significantly.

    Netflix's stock continues to slump further with each new step taken by its competitors. This implies that the company is in a very fragile state competitively and, if its international ventures don't churn out some profits soon, the stock may continue to remain depressed."
     
    Last edited: Sep 6, 2012
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    Amazon gets Epix video rights to challenge Netflix (click for full article)

    MICHAEL LIEDTKE | September 4, 2012 04:41 PM EST |

    SAN FRANCISCO - "Amazon.com's Internet video library is gaining more box-office appeal under a licensing deal with Epix that threatens to undercut Netflix leadership in a growing market that's transforming the entertainment industry.


    The multiyear agreement announced Tuesday eliminates one of the competitive advantages that Netflix's video subscription service held over a rival offering that Amazon provides to customers who pay $79 annually for unlimited free shipping of merchandise bought in its Web store.


    Netflix Inc. had been paying about $200 million annually during the past two years for the exclusive online rights to show movies from Paramount, MGM and Lionsgate 90 days after they appeared on Epix's pay-TV channel. The exclusive window closed on Netflix at the end of August, requiring the company to either renegotiate the terms with Epix or allow the rights to be sold to other Internet video services.


    After Netflix decided that holding the exclusive rights to Epix was no longer worth the cost, Amazon.com pounced on the opportunity to expand its Internet video service."
     
    Last edited: Sep 6, 2012

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