[Infowarrior] - Movie Cartels About To Punish Netflix?

[Richard Forno]

Big Media Cartel About To Punish Netflix?

http://www.deadlinehollywooddaily.com/big-media-cartel-about-to-punish-netflix/

The Wall Street Journal's astute Martin Peers warns tonight that  
Netflix "stock-price bubble may be close to bursting" because  
Hollywood studios and networks don't like the competition. The share  
price has doubled since November, "taking it to a rich valuation of 26  
times estimated 2009 earnings -- a loftier multiple than either Google  
or Apple." But the DVD mail order business wasn't what juiced  
investors: it was Netflix's streaming service. And reports that rival  
Blockbuster could be facing bankruptcy didn't hurt. But now "Hollywood  
studios appear to be waking up to the threat posed by Netflix's  
instant-watch service, which the company says is being used by  
millions of its subscribers," Peers writes. "That almost guarantees  
that studios will look to renegotiate Netflix's content-supply deals  
on tougher terms. At the same time, some of the studios [like Disney]  
are pondering their own online movie- or TV-subscription services."  
The WSJ also notes competition coming from Amazon's IMDB, which is  
expanding a free ad-supported streaming service. Concludes Peers:  
"Netflix fans take note: A correction is looming."