February 16, 2011

NETFLIX (NFLX) STOCK HURT BY DISNEY (DIS) PRICE RAISE

Image representing The Walt Disney Company as ...Image via CrunchBase

According to LA Times, Disney (DIS) is raising its wholesale rate it charges Netflix (NFLX) for movies to $17.99 per movie. This is significant in that it throws cold water over bull’s argument that costs for Netflix are coming down. In our model for Netflix, this move by Disney does not materially change the dynamics for Netflix .

We will maintain our remaining long position and exit per the prior post.

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