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The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.



) --


(AMZN) - Get, Inc. Report

recently inked a deal with NBC Universal to add about 1,000 titles from its movie library.

We recently


how Amazon's efforts in streaming can impact


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Here we take a look at NBC Universal's filmed entertainment division and how much this contributes to


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. Comcast's acquisition of NBC Universal at the beginning of 2011 made it a unique pay-TV and broadband service provider with control over the network and the content, though the filmed entertainment division makes up a very small portion of this.

Our price estimate for Comcast stands at $27.50

, implying a premium of more than 30% to the market price.

According a

New York Times article

, Amazon has access to Universal Pictures' movie library. Since the terms of the deals are not available, it is useful to look at how the filmed entertainment (Universal Pictures) division impacts Comcast's value.

We estimate that NBC Universal constitutes close to 16% to Comcast's stock. Within the NBC Universal division a quick glance at its second quarter results indicates that filmed entertainment constitutes about 24% of overall NBCUniversal revenues. Given this information, we can approximate that the filmed entertainment constitutes just around 4% to Comcast's stock.

However, if we dig deeper into profits, we see that for the first six months of 2011 the filmed entertainment business was operating at a loss. In fact almost all of the profits for NBC Universal comes from cable networks and broadcasting.This implies that the real contribution of filmed entertainment business to Comcast's value could be much less than 4%!

This answers our question. The film business primarily gets revenues from box office and DVD sales, and so while the Amazon deal might open up another channel of revenue for NBC Universal, we don't expect it to move the needle much.

See our complete analysis for Comcast's stock



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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.