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 Verizon plans on record bond sale in eight parts. Copyright 2013 by, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA, Inc.) or its employees responsible.

Published on Sep 11, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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