Netflix Has A Bull’s Eye on Its Back (NFLX, CSTR, AMZN)

Netflix Inc. NFLX, one of the darlings of Wall Street over the past few months, seems to have a bull’s eye on its back all of a sudden. While the online and direct mail movie subscription company has, more or less, had its business model to itself for the past few years, several companies are popping up as of late that are going to put significant pressure on NFLX’s sales. The first is CoinStar’s CSTR Redbox, which continues to gain traction with consumers via its ~27,000 $1-per-night DVD kiosks. The company’s President has recently said in interviews that it wishes to “develop a digital distribution strategy to succeed in the long run as consumers increasingly use computers and Internet-connected televisions to access movies.” The second is Amazon.com AMZN, which has recently been rumored to be developing a flat-rate online subscription-fee based service. This company currently sells single episodes of TV shows, but is looking to expand its offerings in the space and in movies. Rumor has it that the product will be bundled into its $79 per year Amazon Prime, two-day shipping product. For more information, click here. Shares of CSTR are higher on the session by 0.20%, trading at $43.26. Shares of AMZN are higher on the session by 2.53%, trading at $138.63. Shares of NFLX are higher on the session by 1.67%, trading at $140.30. For more great research like this, as well as how to play it through options…please visit Benzinga’s Options & Volatility Edge and Benzinga’s Cash Generator.