NFLX Drops 2 Points Amid Reports of AMZN Developing Netflix-Like Product

Netflix, Inc. (NFLX), currently the big player of the movie streaming game, dropped a quick 2 points in recent trade. The pullback seems to be attributed to a WSJ report of increased competition from Amazon.com (AMZN).

According to the Journal, Seattle, Wa – based Amazon is working on a Netflix-like subscription service that would offer TV shows and movies. That service will somehow be included and bundled with the Amazon Prime shipping service that’s currently priced at $79 a year. The Journal also says that the service will stream TV shows and movies. This is slightly different than the Amazon Video On Demand service currently ran by Bezos’ company. It’s the streaming part that’s different.

Netflix’s growth surge — the co. had nearly 17 million subscribers at the end of September, up 52% y/y — is prompting concern among movie and TV studios as well as other tech companies. One big worry, notes the Journal, is that the company could end up dominating the electronic distribution of movies and TV the way Apple Inc.’s (AAPL) iTunes Store dominates music.

At last check , shares of NFLX were up $5.34, or 2.93%, to $190.92 at 10:56 a.m. ET on Monday. AMZN lost 33 cents, or 0.19 percent, to $175.35.

Since the beginning of last fiscal year, NFLX’s PPS has risen more than six-fold, leaving the co. with a market cap of around $10 billion.

Netflix shares have traded intraday between $186.29 and $193.00.

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About Ron Haruni 1065 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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