NEW YORK (TheStreet) - In addition to being May Day, today should also be called "Streamageddon". That's because today is the day that Netflix (NFLX) loses more than 1,700 movies from it's online streaming library.
As of today, all Warner Brothers, MGM, RKO and Allied Artists programming that was available on Netflix yesterday is now the basis for Time Warner's (TWX) instant video service called Warner Archive Classic. The new service will cost subscribers $10/month compared to Netflix's $8 per month for similar offerings.
Netflix fell 1.5% to close at $212.91.
The difference between Netflix and Time Warner's service is more than two dollars each month. While the new Time Warner service will be able to boast programming such as the 1921 classic "The Scarlet Letter" also with 1990's features "The Sheltering Sky" and "Hurricane Smith," the company initially won't be offering blockbusters such as the Harry Potter films. Same goes for popular new series such as Netflix's "House of Cards", "Arrested Development" and "Lilyhammer".Established media companies are worried about losing revenue to Netflix, and for good reason. Compared to broadcast TV, Netflix offers better programming. Compared to cable/satellite they offer new programming at much lower monthly prices. Netflix also has to compete with other modern providers such as Hulu in the hunt for new programming. And, other online services are giving broadcasters and cable services fits. Don't forget Aereo. So far the courts have ruled for Aereo's "antenna rental" scheme and against any possible injunctions favored by the old-line broadcasters. If you're keeping track, CBS (CBS) boss Les Moonves has joined with Fox (NWS) management stating that if Aereo is allowed to continue he'll move his programming exclusively to cable. Just a thought, if either company ever pulls the plug on over-the-air distribution of their wares I'm sure there'll be others who will ask the FCC for those same broadcast frequencies. The stakes are huge. Written by Gary Krakow in New York
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV