% | $
Quotes you view appear here for quick access.

Netflix, Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • singhlion2001 singhlion2001 Jan 4, 2013 9:00 PM Flag


    The Warner Bros. deal is significant for Redbox Instant's ability to compete with Netflix specifically thanks to the fact that titles will be available 28 days after their retail release dates. Warner Bros. earlier in the year doubled the amount of time between the day that DVD and Blu-Ray discs go on sale to the general public and movies' appearance on Netflix, to eight weeks.
    Netflix is not in a good position to deal with additional competitive issues.
    REDBOXINSTANT: Epix, a venture of Viacom, Liongate and MGM, will be a key content partner.
    Redbox Instant will cost $8 per month. At launch, the service will include movies from Epix, Lionsgate, NBCUniversal, Paramount Pictures, Relativity, Sony Pictures, and Warner Brothers (which is owned by CNNMoney parent company Time Warner).

    For $1 more, or $9 per month, customers will receive credits for four DVD rentals at Redbox kiosks. Those rentals typically cost $1 each.
    With backing from two multi-billion-dollar corporations (Verizon has a market cap of 123 billion; Coinstar has a market cap of 1.5 billion), Redbox Instant could be one of the most powerful services of its kind. It poses a great threat to Netflix, which has a market cap of just five billion.

    By signing deals with EPIX and other corporations, Redbox Instant will launch with content from Comcast's (NASDAQ: CMCSA) NBCUniversal, Viacom's Paramount Pictures (NASDAQ: VIA) (NASDAQ: VIAB), Lionsgate (NYSE: LGF), Relativity, Warner Bros., MGM and Sony (NYSE: SNE) Pictures Home Entertainment. Redbox has yet to provide a full list of the content that will be delivered through its service.

    Amazon Prime (NASDAQ: AMZN) might provide a few clues.

    That service signed more content deals in 2012 than most of its competitors. The majority of those deals involved older properties, however, such as Fox's 24 and NBC's Friday Night Lights.

    Sentiment: Strong Sell

97.12+0.45(+0.47%)10:05 AMEDT