Shares of Netflix slid after Bloomberg, citing sources close to the situation, reported Microsoft is planning to offer pay television services from Comcast (CMCSA) and Verizon (VZ) through Xbox live. The expanded Xbox streaming may be announced next week and the company is also expected to ink deals with Time Warner’s (TWX) HBO, Sony Pictures Entertainment’s (SNE) Crackle streaming service, NBC Universal’s Bravo and Syfy channels along with Lovefilm UK. Reps from Microsoft and the content providers were unavailable for comment.
Shares of Netflix have been battered of late, trading well below their high of over $300 just a few months ago. Once seen as the leader in streaming content, increased competition has taken some of the luster off of Netflix shares and the company was recently forced to increase its pricing, prompting the company to anticipate the loss of nearly a million subscribers. Management has scrambled, signing content deals with many studios as it tries to fend off competition from Amazon (AMZN), whose recently launched Fire tablet will be able to stream content from Amazon’s movie library.
Netflix (NFLX : NASDAQ : US$113.19), Net Change: -13.95, % Change: -10.97%, Volume: 19,375,034
Microsoft (MSFT : NASDAQ : US$25.45), Net Change: -0.13, % Change: -0.49%, Volume: 62,831,986
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