How Netflix Might Benefit From DoJ's Investigation Of Theater Chains Over Anti-Trust Issues?

The Department of Justice is investigating some of the theatre chains in the country for anti-trust issues and according to Tony Wible, Janney Capital Markets, this might be beneficial for Netflix, Inc. NFLX which is persuading theatre chains to screen its movies.

Wible was on CNBC recently to explain why he thinks so.

Conflict Of Interest

“Netflix is always looking for content and the way it goes about it is licensing it,” Wible said. “But the problem is content is not theirs and so, I think, they are trying to go directly to producers like they are with the Crouching Tiger film that’s getting ready to come out.”

He added, “There is a natural conflict of interest for theatres to have movies that are also on Netflix. But, I think, the theatres are going to be a little bit more mindful now of what they end up negotiating with Netflix.”

Not A Direct Co-Relation

Wible was asked that if the Department of Justice is cracking down on theatre chains for blocking some forms of content, will the chains be more willing to carry Netflix’s movies in the future. He replied, “I think, that the claim that Netflix may make is that it would be an anti-competitive move to not allow their films into the theatre.”

“There is not a direct co-relation with what the Department of Justice is looking at into the theatres and frankly there may be nothing wrong [it’s the] practice that are there of […] an exclusivity. But certainly Netflix and Amazon are both producing films that they would like to get into theatres, but they have been rebuffed across the board by all the theatre circuits,” Wible concluded.