Netflix Not Threatened by Warner-Facebook, Official Says
Netflix Inc. (NFLX), the mail-order and online movie-rental service, doesn’t view Warner Bros.’ plan to offer $3 film rentals on Facebook as a greater threat than other rivals pose, Chief Content Officer Ted Sarandos said.
“Nobody goes to Facebook to watch movies,” Sarandos said in an interview today at a film finance conference in Los Angeles. Netflix will eventually get shows from Warner Bros.’ sister company HBO by offering to pay the cable channel the “right amount,” he said.
Netflix fell 5.8 percent on March 8, the day Time Warner Inc. (TWX)’s Warner Bros. studio announced plans to offer rentals on the Facebook Inc. social network for $3, starting with “The Dark Knight.” That sent the price of Los Gatos, California- based Netflix below $200 for the first time since January.
Netflix, which charges a monthly fee for its service, rose $7.03, or 3.6 percent, to $200.02 at 4:30 p.m. New York time in Nasdaq Stock Market trading. Time Warner fell 84 cents, or 2.3 percent, to $35.69 in New York Stock Exchange composite trading.
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