Netflix Shares Are Tanking As Facebook Unveils Movie Deal With Warner Brothers

Nintendo GDC keynote Netflix

Photo: Joystiq

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.

For more on the Warner Brothers-Facebook link-up click here >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at