Update 1:30 PM ET: The market may be up big, but Netflix is down even more, now off more than 5%.Update 11:15 ET: After nearly 2 hours of trading, Netflix shares are down nearly 4.9% on the Facebook news.
Netflix shares are tanking in the pre-market, in the wake of Facebook’s announcement that it has made a deal with Warner Brothers to distribute movies on its platform.
The first instance of this “experiment” will be an offering of The Dark Night for rental on Facebook, with its credits acting as the payment method. Facebook will take a cut of the sale. There are no guarantees the agreement will proceed beyond this first instance.
Netflix shares are down over 4% in the pre-market today, likely on fears Facebook may creep into their space. The company’s share price has been sliding since February 11, on concerns competitors like Amazon may eat into its market share.