Netflix, Inc. (NASDAQ:NFLX) and DISH Network Corp (NASDAQ:DISH) have recently formed an alliance which seems to have transformed the conventional roles of TV service providers and the online content companies. Earlier this relationship was that of animosity as each one perceived the other as a rival in this space. Not anymore.
In a deal that is the first of its kind, Netflix, Inc. (NASDAQ:NFLX) has made its services available for the users of DISH Network Corp (NASDAQ:DISH), who have the latest version of the Hopper set-top box.
In a segment on CNBC, Steve Grasso, Director of Institutional Sales Stuart Frankel & Co. Inc., explained why he expects even better things for the two companies to come out of this development in the future, especially DISH Network Corp (NASDAQ:DISH). However, embedded in the success of the pay-television provider are more subscription fees and hence more revenues for Netflix, Inc. (NASDAQ:NFLX) as the consumers still have to pay the $7.99 fee for accessing content on from the Hopper set-top box.
“DISH Network Corp (NASDAQ:DISH), they had a headline that they are adding the Netflix, Inc. (NASDAQ:NFLX) app to their Hopper. They are up 25 percent year to date. I don’t know what they are going to do. They seem like the innovators in the space recently. I would be a buyer of DISH,” said Grasso.
DISH Network Corp (NASDAQ:DISH) was up about 3.8%, when the closing bell rang yesterday, and the stock is up nearly 1% in the Pre-market trading. Netflix, Inc. (NASDAQ:NFLX) on the other hand gained only 0.23% as of the end of the trading day, which was the second day of consecutive gains for the stock that has declined considerably since its all time high achieved in August this year.
Netflix has received a rather harsh treatment after the company failed to meet the analysts expectations in terms of subscription growth in the latest earnings report.
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