Wednesday, March 9, 2011

Facebook to compete with Netflix?

This came across the newsfeeds yesterday. Netflix shares are down nearly 4.9 % with the news that Facebook may be getting into the entertainment download business. Amazon.com and others are also looking at this revenue opportunity as well. It could get fairly crowded in the months/years ahead.

NEWSFEED BUSINESS INSIDER MARCH 9-2011

Netflix shares are tanking in the pre-market, in the wake of Facebook's announcement that it has made a deal with Warner Brothers to distribute movies on its platform.

The first instance of this "experiment" will be an offering of The Dark Night for rental on Facebook, with its credits acting as the payment method. Facebook will take a cut of the sale.

Netflix shares are down over 4% in the pre-market today, likely on fears Facebook may creep into their space. The company's share price has been sliding since February 11, on concerns competitors like Amazon may eat into its market share.

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