- EU drops Qualcomm antitrust probe
- Barnes & Noble reports 2Q loss, cuts guidance
- Nokia to ax 220 R&D jobs in Japan
- Fox CEO wants US to join France on Internet piracy
- Newspaper circulation may be worse than it looks
- GE, Vivendi talks over NBC Universal stretch on
- B&N Nook sells out, too late for holiday orders
- Dell's profit, stock drop on weak quarterly report
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- GM's Agreement to Sell Saab To Swedish Firm Falls Apart
- US Home Prices Up 5th Month, 2nd Straight Quarter
- FDIC Fund Falls into The Red, Bair Urges Lending
- Buyers Look For Bargains At Luxury Condo Auction
- Weak Dollar Is Golden for Mining Companies
- Revised GDP Reading Puts Growth at 2.8%; Inflation Tame
- Behind The Scenes With Warren Buffett
- Gold Will Collapse Like Oil Did in 2008: Charts
- CA "More Profitable" After Saving Energy: CEO
- Turkey Day 101: How Well Do You Know Your Bird?
- Fed Sanguine About US Recovery, Worried on Jobs
- GM's Agreement to Sell Saab Unit Falls Apart
- Consumer Confidence Improves but Still Shaky
- US Home Prices Up 5th Month, 2nd Straight Quarter
- FDIC Fund Falls into The Red, Bair Urges Lending
- Holiday Guide to This Season's Smartphones
- Six Ways to Boost Your Income in a Big Way
- Buyers Look for Bargains at Luxury Condo Auction
Text Size 
Shares of Netflix Inc. [NFLX
Loading...
()
] slipped Tuesday ahead of the company's quarterly report after an analyst said online video sites like YouTube and Hulu could pose a threat to the online movie rental company in the coming months and years.
 |
CNBC.com Netflix |
Lazard Capital Markets analyst Barton Crockett cited "new competitive challenges" for Netflix when he started coverage of the company with a "Sell" rating and a target price of $34.
Netflix, the analyst noted, has "answered the long-term online threat to its core DVD by mail service with Watch Instantly, a streaming feature that has driven a renaissance in subscriber growth."
Netflix subscribers are able to watch thousands of movies and television shows streamed instantly to their computers or TV screens through set-top boxes such as Microsoft Corp.'s [MSFT
Loading...
()
] Xbox 360 video game console, DVD players and other gadgets. The company surpassed 10 million subscribers in February.
Crockett, however, expects Netflix's "streaming edge" to be "be meaningfully eroded in coming months and years by (Google Inc.'s YouTube), as well as by the improving Hulu service."
Netflix charges a monthly subscriber fee for its DVD-by-mail service, which also includes streaming some of its content. Its most popular plans range from $9 to $17 per month. Sites like Hulu.com, meanwhile, are free to use but include short commercials in the TV shows and movies they show.
Shares of Los Gatos, Calif.-based Netflix, which is scheduled to report its first-quarter results Thursday, fell $2.99, or 6 percent, to $46.62 in afternoon trading. The stock has traded in a 52-week range of $17.90 to $50.24.
Print
Email
- Remember when auto shows were major events where new models could generate buzz?
- A diet high in fat and sugar might actually be good for your portfolio.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- Italians were outraged by a minister's comments that lunchbreaks are bad for waistlines and the economy.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes