Netflix (NFLX) in Hot Seat as Competition Heats Up in LatAm
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Netflix, Inc. (Nasdaq: NFLX) is trending lower Friday afternoon, following reports that Sony (NYSE: SNE) has inked a deal with a major media player in LatAm.
According to a release from the company, Telefónica (NYSE: TEF) and Sony "have reached an agreement through which the Telefónica group, through its video on demand platforms (VoD), will offer in Latin America all new Sony Pictures film releases over the next few years, in addition to a wide selection of catalogue [sic] content and TV series."
Additionally, "As part of the agreement, VOD titles include recent releases such as 'Girl with the Dragon Tattoo,' 'Moneyball,' and 'The Smurfs,' and future releases such as 'Men in Black III' and 'The Amazing Spider-Man.' Furthermore, multiscreen access will be offered, through devices such as online TV, tablets, PCs, smartphones or game consoles."
This is bad news for Netflix, which just launched in LatAm last September. Telefónica is huge, with 250 thousand employees and operations in Europe, LatAm, and even China. Should Telefónica aim for a broader move in several of its key markets, Netflix might have to make a bigger push -- which could include more spending on content -- to keep gaining market share.
Netflix is down about 3.2 percent Friday afternoon.
According to a release from the company, Telefónica (NYSE: TEF) and Sony "have reached an agreement through which the Telefónica group, through its video on demand platforms (VoD), will offer in Latin America all new Sony Pictures film releases over the next few years, in addition to a wide selection of catalogue [sic] content and TV series."
Additionally, "As part of the agreement, VOD titles include recent releases such as 'Girl with the Dragon Tattoo,' 'Moneyball,' and 'The Smurfs,' and future releases such as 'Men in Black III' and 'The Amazing Spider-Man.' Furthermore, multiscreen access will be offered, through devices such as online TV, tablets, PCs, smartphones or game consoles."
This is bad news for Netflix, which just launched in LatAm last September. Telefónica is huge, with 250 thousand employees and operations in Europe, LatAm, and even China. Should Telefónica aim for a broader move in several of its key markets, Netflix might have to make a bigger push -- which could include more spending on content -- to keep gaining market share.
Netflix is down about 3.2 percent Friday afternoon.
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