The news today from Reuters, a global news agency, reports that Netflix and Dreamworks have teamed up. Netflix will be streaming content online rather than cable through a collaboration with Discovery Communications. (Discovery channel, Animal Planet and other multimedia platforms). According to Reuters, Netflix' (NFLX -Nasdaq symbol), stock went up 7% today when the news broke. Reuters reported high shares at $137.88. However, after I researched the Nasdaq site to validate the Reuters information, their official high was actually $134.99 with an official end of day closing price at $127.49. Rather than a 7% rise according to Reuters, Netflix stock officially dropped to 3.6%. Somebody didn't do their research. Dreamworks, (DWA-Nasdaq symbol) low today was $18.90 a share with an official close price of $19.90 up 3.02%. Discovery Communications Nasdaq-DISCA, low $41.53, high $42.77, close price $41.78. up 0.29%. My question was why did the Netflix stock price go down even after this announcement? Dreamworks and Discovery went up. After more research I found a site named "The Street" that cleared up my question. Apparently the streaming will not be available until 2013. With all the rapid changes in technology anything can happen by that time. Also in my opinion if they will be streaming older movies, will people watch them online? The article also mentions that Amazon.com and Fox have negotiated their own deals to do the same service. Today AMZN-(Nasdaq) low=$222.40, high:$234.75, close price $224.21 down 2.45%. Fox Television Networks also known as Fox Chase Bancorp, Inc. Nasdaq symbol=FXCB stock chart shows for today September 27, 2011, low $12.27 per share, high=$12.77, closing price=$12.57. Down 0.87%. I am not a financial expert or analyst but from reading the information and looking at the figures from today it may be apparent that consumers are not prepared for this change. I did one more google search titled "Wall street and Netflix" not really expecting a return but sure enough on Yahoo! Finance the article stated that "Netflix...features...bad reviews...market watchers say the split could cause more subscribers to drop the service".
Credits: http://www.yahoo.finance.com/, http://www.reuters.com/, http://thestreet.com/, http://www.nasdaq.com/
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