Netflix (NFLX) Hits New High on Virgin Deal
Shares of Netflix Inc. (NFLX) closed up +18.91 or +6.43 percent to $313.06 per share on Tuesday, after the company announced it had struck a deal with U.K. cable company Virgin Media to incorporate Netflix streaming service to be integrated into Virgin's cable subscriptions. Netflix shares shattered a previous high made two years ago, trading up to a new all-time high of $313.24 per share. Daily Chart
Los Gatos, California based Verizon Communication was founded in 1997 and is an Internet subscription service for streaming TV shows and movies online.
Movies can be streamed on TVs, mobile devices and computers. U.S. subscribers can receive Blu-ray discs and standard definition DVD sent directly to their homes. Netflix offers its streaming media subscriptions in the United Kingdom, North and South America, Ireland, Finland, Norway, Sweden, the Caribbean and the Netherlands. As of the end of 2012, the company announced it had a total of 27.1 streaming customers in the United States and 29.4 million total streaming customers. New York based Virgin Media, which was recently purchased by Liberty Global Plc, will begin a trial with 40,000 of its customers currently using TiVo Inc. (TIVO
) set top boxes. The TiVo feature requires a Netflix subscription and will be made available later this year to the 1.7 million TiVo users subscribing to Virgin Media's cable service. As of the end of June, Virgin Media had a total of 3.77 million customers located in the United Kingdom of which 44 percent use TiVo set top boxes. Once Netflix is installed on TiVo sets, Netflix programs and movies will show up as a regular cable channel. Virgin Media's Chief Operating Officer, Dana Strong said that, "We're delighted to be bringing yet another groundbreaking service onto TV screens in millions of Virgin Media homes. Netflix is a fabulous addition to Virgin Media TiVo, enabling our customers to enjoy even more of their favorite shows and movies simply and easily - all through their TV set-top box and at outstanding value." Netflix head of global development, Bill Holmes stated, "The UK has given Netflix a fantastic welcome and we're excited to be partnering with Virgin Media to bring an amazing Netflix experience to Virgin Media customers." The deal with Virgin Media coincides with Netflix launching its video streaming service in the Netherlands. The announcement for entering the Dutch market was made in June without a specific date and was announced early Wednesday. The service will cost 7.99 per month. Netflix stock has had a phenomenal year, trading in the mid 50s in October of 2012; the stock has risen sharply in 2013, making its all time high yesterday after the Virgin Media news. With the added business from the UK and the Netherlands, and further expansion into the European market, Netflix stock could continue to appreciate in the long term despite a possible short term correction. Other News About NFLX Netflix Launches Video Streaming Service in The Netherlands
Netflix is expanding aggressively in the European market. Netflix Is Killing the Movie Business
Article on the effects of Netflix on the movie business. Other Stocks in the News Apple Opts for Profit Over Market Share with Not-So-Cheap iPhone
Apple continues pricing its products higher than competitors. Verizon Said to Plan Record Bond Sale of Up to $49 Billion
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Published on Sep 11, 2013
By Jay Hawk