Time Warner Enters Streaming Movie Business
Time Warner is jumping into the business of streaming online video, using its vast library of classic movie and TV shows to challenge Netflix, Amazon et al.
Time Warner is jumping into the business of streaming online video, using its vast library of classic movie and TV shows to challenge Netflix, Amazon et al.
Carl Icahn is making a move on Netflix. The infamous activist investor and corporate raider has taken a nearly 10% stake in the DVD rental and video streaming giant, which means he must see a way to make a profit on its recent troubles. So does Icahn have a buyer in mind?
Netflix shares were hammered on Wednesday after it posted weak domestic subscriber growth and dialed back its forecast. Many will argue that there's nothing wrong with where it is now, but there are real problems and real volatility driving the plot at the leading premium video service.
Amazon has a new plan to get consumers to buy more: Its "Add-on" program enables the e-tailer to offer free delivery on "thousands of items at a low price point that would be cost-prohibitive to ship on their own." But wait -- isn't that just like Amazon Prime? Not exactly. Here's why.
In a single deal, Amazon has become a legitimate rival to Netflix. Its streaming deal with EPIX gives its Amazon Prime customers free access to 2,000 movies from Paramount Pictures, MGM, and Lionsgate -- films like Iron Man 2, Super 8, True Grit, Rango, and many others.
There were a few positives in Netflix's quarterly report Tuesday, but the stock fell 14% thanks in part to mixed results and uninspiring guidance. But the real reasons investors fled are more complex -- and disturbing.
It's getting pretty crowded in the streaming space. Comcast is the latest company to throw its hat into the digital ring: It will offer existing cable subscribers access to streaming TV shows and movies through a new service called Streampix. And other streaming services, from Netflix to YouTube, are offering original content.
It sometimes seems like every new idea Amazon has dreamed up lately has been designed to help it lose money more efficiently. But the truth is more subtle: If it doesn't take these short-term hits now, it's destined to get crushed in a few years when the tax men come a-calling.
Amazon.com may be gearing up to start charging for the unlimited video streaming service it now includes free with Amazon Prime. Sound familiar? Of course it does -- just rewind a few months to a summer that Netflix would certainly prefer to forget.








