Netflix Expands Exclusive Content, Continues Strategy

Shares of Netflix (NASDAQ: NFLX) are seeing much strength during Wednesday's trading session after the company announced an exclusive deal with notable horror movie director Eli Roth.Eli Roth will work from the critically-acclaimed novel by Brian McGreevy, "Hemlock Grove", which updates classic monster archetypes for a post-industrial America in a tale of alienation, adolescence and murder. Episodes will only be available for Netflix members to watch instantly, beginning early in 2013.It is interesting that investors are keying in on this exclusive deal, which caused shares of Neflix to move up over 4% in early trade.Benzinga reached out to Justin Colatosti, analyst at Dawson James, for his take on the announcement."It's tough to pin-point a single headline to a movement in the stock," Colatosti stated. "However, this just continues Netflix's plan for exclusive content. Netflix already has streaming deals set up with heavyweights like Arrested Development, House of Cards starring Kevin Spacey, and Mad Men."Netflix has already agreed to a deal with Lions Gate Entertainment (NYSE: LGF) last year to stream all seven seasons of the television hit “Mad Men”."The long-term story remains the same," Colatosti concluded. "Netflix's future will likely depend on the on the pricing and offering from Verizon (NYSE: VZ) and Coinstar's (NASDAQ: CSTR) Redbox."Announced back in February, Verizon and Coinstar formed of a joint venture that will create a new choice for consumers to find an affordable way to access video entertainment. The venture's services will offer Redbox's new release DVD and Blu-ray Disc rentals combined with a new video on-demand streaming and download service from Verizon. This will likely be Netflix's biggest competitor going forward.Only time will tell to see who will win the battle of cheap, over-the-top streaming services; however, as Netflix continues to expand its exclusive content offering, the more the likelihood they will continue to be a mainstay in this business.