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Jeremy Frommer, CEO of Hedge Fund LIVE Jeremy Frommer has 20 years of industry experience and is currently responsible for general management and leadership of the General Partner. Previously, Mr. Frommer was a Managing Director and Head of the Global Prime Services Group (“GPS”) at RBC Capital... More
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  • Why NFLX is down this AM.  0 comments
    Mar 8, 2011 9:32 AM | about stocks: NFLX

    NFLX is down this morning on news that Facebook will be offering movies through a partnership with Warner Bros. 

    Here’s the Article from All Thing’s Digital:

    Every digital heavyweight is making a play for your living room. Apple, Netflix, Hulu, Amazon, Google, Microsoft, everyone. With one odd exception: Facebook.

    Now that’s over. The social media giant is taking its first step to connect you with movies and TV shows, while collecting a fee in the process. It’s going to let users rent movies directly from the site, using Facebook Credits to pay for the transaction.

    First up is “The Dark Knight”, from Time Warner’s Warner Bros.. It will cost 30 credits, or $3, for a 48-hour rental, via an app the studio has built for the site. More movies, along with the ability to purchase the titles outright, are coming.

    Warner Bros. describes the rental as a test, but there’s no reason this shouldn’t work. Facebook has 600 million registered users, and courtesy of Zynga and other social games, a big chunk of them are already using the site’s virtual currency. Easy to connect the dots here.

    Just as important: While other video sites are trying to figure out how to add social “hooks” into their experience, Facebook doesn’t have that problem. It is the social hook.

    The only odd thing about this combination is that it’s taken this long to come about. Facebook is either the 2nd or 6th-biggest video site in the U.S., depending on who’s counting. And that’s without the benefit of any Hollywood hook-up at all: Just the clips you and your pals put up.

    So just imagine what could happen if Mark Zuckerberg and the big studios decide they’re really serious about making this thing work.

    Support Levels are as follows:

    200

    197.85

    193.35

    187.50 

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: NFLX
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