Netflix, Inc. (NASDAQ:NFLX) may be on the verge of getting yet more competition in the television streaming game, at least in foreign markets; this time from CBS Corporation (NYSE:CBS), the struggling cable company which is increasingly relying on its cable assets to generate revenue. As Jonathan Marino of The Street reports, analysts believe CBS Corporation (NYSE:CBS) will join in on the consolidation game taking place in the U.S cable industry, and enhance their Showtime subsidiary as an alternative to Netflix, Inc. (NASDAQ:NFLX).
“Shares of CBS are down more than 12% to start 2014, coming at a time when the cable industry is being shaken up by online players as well as by consolidation plays. That’s got some analysts bullish on CBS’ stock, believing that the company will buy up more cable networks in the future. CBS for its part is floated as a potential buyer of Univision, as well as a long-term competitor to Netflix, with the subscription network Showtime cranking out high quality series,” Marino said.
It was reported last week that CBS Corporation (NYSE:CBS) was considering following HBO’s lead and making Showtime a standalone service outside the U.S, with CEO Les Moonves saying they had enough content to make such a play. Showtime offers a variety of popular televisions shows, movies, and sports, and like Netflix, Inc. (NASDAQ:NFLX), has begun producing its own series including Homeland, Ray Donovan, and Masters of Sex. In addition to interest in Univision, it was also reported that CBS Corporation (NYSE:CBS) could be a player in the possible sale of The Weather Network.
Netflix, Inc. (NASDAQ:NFLX) has recently taken a greater step into foreign markets, expanding into six new European countries, including Germany and France. They’re also expected to make a move into the Australian market in the near future. The expansion is poised to give them traction ahead of the potential arrival of competitors like HBO and Showtime in those markets, while facing off against existing local options.
Both Netflix, Inc. (NASDAQ:NFLX) and CBS Corporation (NYSE:CBS) are down in morning trading today, 2% and 1.5% respectively.
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