Netflix (NFLX) Lower as Rivals Make Strategic Moves, Senate Hearing on Video Privacy

Netflix (Nasdaq: NFLX) is continuing to get it's butt kicked Tuesday. Four items of note on the session:

1. First, U.K. peer BSkyB is launching a service to rival Netflix. This means the U.K. market will see even further saturation with Amazon's (Nasdaq: AMZN) LOVEFiLM already there and YouView -- another rival -- slated to launch in the second-quarter of 2012.
   
   
2. Coinstar (Nasdaq: CSTR), owner of Redbox kiosks, said it renewed its relationship with Wal-mart (NYSE: WMT); and
   
   
3. Coinstar is also reportedly ending its agreement with Warner Bros. Following recent changes which double the time that new releases can be rented out by Coinstar and Netflix -- from 28 days prior to 56 days now -- Coinstar is slated to get new material from third-party suppliers, according to Bloomberg. This will give Coinstar a leg-up against Netflix, which will still need to wait 56-days before releases can be rented.
   
   
4. Netflix/Facebook integration bill had opposition in the Senate...
   
   From transcript on Al Franken Hearing on protecting video viewers privacy:
   
   "Before I close, I want to touch on H.R. 2471, a recently passed House bill that would modify one aspect of the Video Privacy Protection Act. H.R. 2471 lets the video company ask for your consent just once up front to disclose the videos you watch instead of asking for consent on a case by case basis
   
   Netflix has strongly supported this bill and is explained that it will make it easier for them to integrate into social media sites like Facebook.
   
   I'm pleased to report that Netflix is here with us today to talk about their support.
   
   I want to be honest, based on what I've seen so far, I have some reservations about H.R. 2471.
   
   First, it looks like the bill will basically undo users ability to give case by case permission to a video company on what it can tell people and what it can't. And that worries me because case by case consent, I believe is a really good thing.
   
   It's a really good thing that people can easily tell their video companies, sure, go ahead and tell people I watched "The Godfather" but no, don't tell them I watched "Yoga for Health, Depression and Gastrointestinal Problems....
   
   

Shares of Netflix are down over 5.3 percent Tuesday.

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