This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Netflix Falls on 'Streamageddon' Day

Stocks in this article: NFLXTWCCBSNWS

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

Gary Krakow is TheStreet's senior technology correspondent.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs