Blockbuster's New Streaming Service Could be a Nightmare for Netflix (NFLX) - Analyst
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Rating Summary:
10 Buy, 20 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 25
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Dish Networks (Nasdaq: DISH) will be hosting a media event this Friday "A Stream Come True," which will likely be the official announcement of a new Blockbuster streaming service.
Analysts at Jefferies believe the new Blockbuster streaming service will be aimed squarely at Netflix (NASDAQ: NFLX) and will seek to take advantage of Netflix's recent missteps.
Blockbuster should be able to capitalize on its long-held content relationships with film/TV studio, the firm notes. Blockbuster's releases are currently available 28 days before Netflix (Nasdaq: NFLX) and Redbox (Nasdaq: CSTR). Currently
Blockbuster On Demand allows new home video releases as soon as films are released in the home entertainment window. Netflix and Amazon Prime (Nasdaq: AMZN) do not have an offering in this early window.
Also, Blockbuster is expected to announce a monthly subscription offering similar to what Netflix and Amazon have, at a potentially more attractive price point.
As Hollywood studios recognize that the best way to preserve the value of their content is to foster healthy competition in new distribution channels, Blockbuster's home video relationships "are a strong base to build off of," Jefferies said.
The backing of Dish Network, the third largest provider of pay TV in the US, could be a "differentiator," the firm said.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $130.03 yesterday.
Analysts at Jefferies believe the new Blockbuster streaming service will be aimed squarely at Netflix (NASDAQ: NFLX) and will seek to take advantage of Netflix's recent missteps.
Blockbuster should be able to capitalize on its long-held content relationships with film/TV studio, the firm notes. Blockbuster's releases are currently available 28 days before Netflix (Nasdaq: NFLX) and Redbox (Nasdaq: CSTR). Currently
Blockbuster On Demand allows new home video releases as soon as films are released in the home entertainment window. Netflix and Amazon Prime (Nasdaq: AMZN) do not have an offering in this early window.
Also, Blockbuster is expected to announce a monthly subscription offering similar to what Netflix and Amazon have, at a potentially more attractive price point.
As Hollywood studios recognize that the best way to preserve the value of their content is to foster healthy competition in new distribution channels, Blockbuster's home video relationships "are a strong base to build off of," Jefferies said.
The backing of Dish Network, the third largest provider of pay TV in the US, could be a "differentiator," the firm said.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $130.03 yesterday.
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