Tuesday, March 8, 2011

The FaceBook Shakes Netflix (NASDAQ: NFLX)

NEW YORK - Warner Bros now offering movie rental on Facebook. Netflix shares down over 4%.

Netflix shareholders remained a little skittish this morning after Warner Bros a subsidiary of media conglomerate Time Warner announced a deal with Facebook to distribute their titles. Users can stream videos from within Facebook fan pages.

Currently the Dark Knight is the only available film but more titles will be added in the coming months. Each rental will cost 30 Facebook credits, or $3, and have access to the rental for up to 48 hours after purchase.

It appears Facebook is following the more familiar renting movie business model as opposed to Netflix which is more of an all you can eat model. The Netflix model has no proven long term record and may collapse under its own weight.

To see the full report click here.

No comments:

Post a Comment