Netflix Falls Most Since October on Apple Competition

Photographer: Andrew Harrer/Bloomberg

Netflix Inc. has built a lead in Internet television by spending heavily and because many media companies that own TV shows and movies have been reluctant to sell content directly to other online services. Close

Netflix Inc. has built a lead in Internet television by spending heavily and because... Read More

Close
Open
Photographer: Andrew Harrer/Bloomberg

Netflix Inc. has built a lead in Internet television by spending heavily and because many media companies that own TV shows and movies have been reluctant to sell content directly to other online services.

Netflix Inc. (NFLX), the largest online video-subscription service, fell the most since October following a report that Apple Inc. (AAPL) is in talks for a streaming TV partnership with Comcast Corp. (CMCSA)

Netflix, based in Los Gatos, California, fell 6.7 percent to $378.90 at the close in New York, the biggest decline since Oct. 22. The retreat was part of a broader sell-off of technology stocks on the Nasdaq 100. Netflix has lost about 17 percent from the all-time closing high of $454.98 on March 4.

Apple is in talks with Comcast, the nation’s largest cable provider, to deliver shows through the $99 Apple TV set-top box, the Wall Street Journal reported yesterday, citing people it didn’t identify. The Cupertino, California-based company also has held talks with Time Warner Cable Inc. Apple seeks to unveil a device by April and have it for sale by the Christmas holidays, people with knowledge of the matter have said.

Joris Evers, a spokesman for Netflix, declined to comment.

Netflix in February agreed to pay Philadelphia-based Comcast millions of dollars annually for more-direct connections that ensure improved speed and reliability for its video service.

Netflix, which will spend $7.25 billion on movies and TV shows over the next five years, has built a lead in Internet television by spending heavily and because many media companies that own TV shows and movies have been reluctant to sell content directly to other online services.

Such a move could harm cable and satellite providers who pay licensing fees that make up a substantial part of media companies’ revenues.

Comcast rose 0.6 percent to $50.30. Apple gained 1.2 percent to $539.19.

To contact the reporter on this story: Cliff Edwards in San Francisco at cedwards28@bloomberg.net

To contact the editors responsible for this story: Rob Golum at rgolum@bloomberg.net James Callan

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.