Netflix to offer new horror series

The company is laying the groundwork to stand out from other rivals jumping into the video-streaming business.

By Benzinga Mar 21, 2012 6:57PM

By Brandon Pilzner, Benzinga


Shares of Netflix (NFLX) saw strength Wednesday, closing up 4.4% to $120.10 after the company announced an exclusive deal with notable horror director Eli Roth.


Netflix will give members exclusive access to "Hemlock Grove," a series based on the critically acclaimed novel by Brian McGreevy. The series, slated to run for 13 episodes, updates classic monster archetypes for a post-industrial America in a tale of alienation, adolescence and murder.


Investors may have keyed in on this exclusive deal, or Wednesday could have been another day of mystery momentum for the stock. At any rate, shares broke out early and stayed close to the $120 range for much of the trading day.


Benzinga reached out to Justin Colatosti, analyst at Dawson James, for his take on the announcement. "It's tough to pinpoint a single headline to a movement in the stock," Colatosti stated. "However, this just continues Netflix's plan for exclusive content."


After a tumultuous 2011, Netflix has been pursuing a strategy of offering exclusive, original shows to customers. It's spending $100 million to license "House of Cards," starring Kevin Spacey. It also debuted the original series "Lillyhammer" and has licensed a number of new episodes of cult favorite "Arrested Development."


Netflix agreed to a deal with Lions Gate Entertainment (LGFlast year to stream all seven seasons of the television hit "Mad Men."


"The long-term story remains the same," Colatosti concluded. "Netflix's future will likely depend on the pricing and offering from Verizon (VZ) and Coinstar's (CSTR) Redbox."


Verizon and Coinstar announced a joint venture in February that aims to offer streaming and downloadable videos as well as disc rentals from Redbox kiosks. The service is expected later this year, and will likely become Netflix's biggest competitor.


The battle of cheap streaming has yet to begin in earnest, and Netflix is already laying the groundwork to stand out from the rest of the field.


More from Benzinga:
9Comments
Mar 22, 2012 2:09PM
avatar
It sounds like Netflix is trying to expand their market. It should be interested to see if this is successful.
Mar 22, 2012 1:50PM
avatar
Wow, this should get interesting. Will Netflix become an online version of HBO?
Mar 22, 2012 8:34AM
avatar
I'm sure investors are very worried about the VZ/CSTR deal, however, still need more info to see if it will eat up NFLX sub growth.
Mar 22, 2012 2:45PM
avatar
Netflix better stay strong because I don't feel like acclimating to ANOTHER new service!
Mar 22, 2012 2:01PM
avatar
After the struggle it faced last year, it will be interesting to watch Netflix compete with the likes of Redbox/Verizon&Coinstar.
Mar 22, 2012 1:49PM
avatar
Not sure what is scarier - the horror series or NFLX's numbers
Mar 22, 2012 9:13AM
avatar
wow, i guess that announcement guarantees 20m viewers for the show if it ever gets here.  i don't think another vampire series is going to push that 3.5B they need in sales. 
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
278
278 rated 2
474
474 rated 3
641
641 rated 4
639
639 rated 5
663
663 rated 6
640
640 rated 7
499
499 rated 8
284
284 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.