Netflix Content a Game-Changer?

Thursday, 31 Jan 2013 | 5:40 PM ET
Netflix's $100 Million Gamble
Has Apple bottomed? The Fast Money traders, weigh in. Netflix is going head to head with cable providers and is now offering original content, with Rich Greenfield, BTIG media analyst.

Netflix's move into cable TV territory with introduction of original content could shift the business, BTIG media analyst Rich Greenfield said Thursday.

"When you think about the broadband world, cable operators make a ton of money," he said on CNBC's "Fast Money."

Yet internet service providers do not share revenues with content providers or websites.

"Historically, you'd go, 'If Netflix isn't available, so what? I'll find another way to find content,'" he said.

But with the introduction of its original series, "House of Cards" starring Kevin Spacey, Netflix could be setting up a revenue-sharing agreement, Greenfield said.

Such a deal would also benefit the likes of Amazon.com, he added.

"It would obviously be bad cable operators like Comcast as well as Time Warner Cable," he said. "Even Verizon and AT&T, which have broadband businesses that are getting bigger, like FIOS."

Trader disclosure: On Jan. 31, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is "long stock short calls" JPM; Jon Najarian is short FB Puts; Jon Najarian is long ANN; Jon Najarian is long calls on IMAX; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami is long AGU; Karen Finerman is long Puts in AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long M.

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