Deutsche Bank Comments On CBS / Netflix Deal (CBS, NFLX)

Deutsche Bank provided color on the announced CBS CBS and Netflix NFLX deal in a research report published today. In the report, Deutsche Bank states, "We continue to see Netflix as an add-on service and not a substitute for pay TV, and expect 4Q pay TV net adds rebounding to growth will bear out this view. Also interesting, CBS was the last of the majors to cut its Netflix deal. We expect that Netflix's rapid rise in TV and movie rights is now going to hit a wall, with Hollywood having little interest in selling incremental shows to Netflix, in particular TV shows not yet sold into syndication." Deutsche Bank has previously given CBS a Buy rating, and does not currently cover Netflix.