Netflix to offer new horror series
The company is laying the groundwork to stand out from other rivals jumping into the video-streaming business.
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."
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.
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