The deal will bolster the library of Amazon's Prime Instant Video, which becomes the exclusive online-only platform for HBO's content. The agreement allows users to watch full seasons of HBO shows, and past seasons of its current lineup are scheduled to be added within three years of airing on the network. HBO Go will also be available on Amazon's Fire TV platform by the end of 2014.
The deal allows customers to not have to pay for HBO through their cable provider to have access to much of HBO's programming. According to a press release, this marks the first time HBO shows have been licensed to an online-only subscription streaming service.
Netflix, which also recently announced it would increase its monthly subscription cost for new customers, dropped 3.42% to $360.15 at 11:05 a.m. on Wednesday.Must Read: Warren Buffett's 10 Favorite Growth Stocks SELL NOW: If you own any of the 900 stocks that TheStreet Quant Ratings has identified as a 'Sell'...you could potentially lose EVERYTHING in the next 6-12 months. Learn more. ---------- Separately, TheStreet Ratings team rates NETFLIX INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 24.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 507.69% and other important driving factors, this stock has surged by 88.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although NFLX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that NFLX's debt-to-equity ratio is low, the quick ratio, which is currently 0.56, displays a potential problem in covering short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Internet & Catalog Retail industry and the overall market, NETFLIX INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: NFLX Ratings Report
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