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Technology Stocks : XO Holdings, Inc. (XOHO - XO Communications)

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To: DENN who wrote (497)4/22/2009 1:39:32 PM
From: tech101   of 615
 
Analyst Says Netflix Vulnerable to Streaming Competition

By Erik Gruenwedel | Posted: 21 Apr 2009

egruenwedel@questex.com

Shares of Netflix Inc. April 21 closed down more than 6% after an analyst warned the Los Gatos, Calif.-based online DVD rental pioneer was susceptible to burgeoning threats from streaming services such as Hulu.com and YouTube.

Barton Crockett, analyst with Lazard Captial Markets, in a research note said the draw of Netflix’s popular Watch Instantly free streaming service could “be meaningfully eroded” in the near term as Hulu, CBS-owned TV.com and YouTube aggressively bow free ad-supported content.

YouTube last week inked streaming deals with Sony, MGM and Lionsgate, among others.

Netflix shares fell $3.01 to close at $46.60 per share, which still represents a 56% increase since the beginning of the year.

homemediamagazine.com
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