Netflix (NFLX) Sees Pressure as Billionaire Slim Takes Aim, Streaming Redbox to Launch

November 30, 2012 6:33 AM EST
Does the good news for Netflix (Nasdaq: NFLX) ever stop coming in?

According to reports from the Financial Times (FT) out Friday, billionaire Carlos Slim is looking to challenge Netflix in Mexico via a new streaming content service via América Móvil (NYSE: AMX), called Clarovideo. The service will run about $5 per month, or just 66 percent of Netflix's cost.

Netflix has been held back from further development in Mexico due to lack of a dedicated broadband network. However, Slims's América Móvil runs one of the largest broadband services in the country and has also been making a move into 4G service in Mexico's capital and surrounding provinces.

Additionally, news from CNET this morning has Counstar (Nasdaq: CSTR) aiming to launch its own streaming service in December. The service, which may be available as soon as December 17th, is called Redbox Instant and may cost as low as $6 per month. RedBox Instant is from the previously announced joint venture between Coinstar and Verizon (NYSE: VZ).

Coinstar and Verizon have been mum on details, only saying that the service would debut in the second half of 2012. Redbox Instant is expected to be available on a variety of devices, like tablets, PCs, and smartphones.

The $6 per month will give users unlimited streaming access, while an $8 per month subscription will put credits toward users' DVD rentals.

Netflix shares are indicated lower Friday morning.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Insiders' Blog, Trader Talk

Related Entities

Carlos Slim

Add Your Comment