Netflix shares continue to drop today, a day after tumbling 8 percent on a report that Apple is considering creating original video programming.
Other news that could affect Netflix’s business: Amazon on Tuesday announced that it has expanded the option to download movies and TV shows to Prime members using iOS or Android, something streaming-focused Netflix doesn’t offer.
Also, don’t forget that Netflix’s streaming service is losing a lot of blockbuster and high-profile movies at the end of the month, with Hulu snagging a contract with premium cable network Epix instead. This means no more “The Hunger Games: Catching Fire,” “The Wolf of Wall Street” and more on Netflix come Sept. 30. Earlier this week, Netflix Chief Content Officer Ted Sarandos downplayed the end of its five-year contract with Epix, saying that Netflix is choosing to focus on original content.
Speaking of Hulu, it announced today a new ad-free option for subscribers. It’ll cost $11.99 a month — more than the lowest-cost Netflix streaming subscription, which has always been ad-free — but did we mention that the service is gaining a bunch of new movies? In its press release today, Hulu described its Epix hookup as a “landmark deal.” It also boasted of “aggressively” boosting its lineup in the past year, including deals with other premium cable networks and landing exclusive streaming rights for shows such as “Seinfeld” and “Empire.”
Netflix CEO Reed Hastings is taking the increased competition — at least the rumored one, from Apple — in stride. He told CNN today that “it’s really not that big a deal given the total number of shows being produced around the world.”
But investors still seem to be spooked. Los Gatos-based Netflix’s shares are down more than 3 percent to about $102. That’s down 19 percent from their year-to-date closing high of $126.45.
Photo from Associated Press archives