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Can Netflix Benefit From Antitrust Investigations Into Theater Chains?

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Can Netflix Benefit From Antitrust Investigations Into Theater Chains?

The Department of Justice is investigating some of the theater chains in the country for antitrust issues and, according to Janney Capital Markets CFA Tony Wible, this might be beneficial for Netflix, Inc. (NASDAQ: NFLX). In regards to this claim, Netflix is currently persuading theater chains to screen its movies.

Wible was on CNBC recently to explain why he thinks Netflix could benefit from these screenings specifically and the investigations in general.

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 there."

"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."

Related Link: Netflix Denies Rumors That It Will Add Ads

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

Not A Direct Correlation

Wible was asked that if the Department of Justice is cracking down on theater 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 the claim that Netflix may make is that it would be an anti-competitive move to not allow their films into the theater.

"There is not a direct correlation with what the Department of Justice is looking at [...] And frankly, there may be nothing wrong – it’s the practice of windowing and exclusivity. But certainly, Netflix and Amazon are both producing films that they would like to get into theaters, but they have been rebuffed across the board by all the theater circuits," Wible concluded.

Image Credit: Public Domain

Posted-In: Amazon CNBC Crouching Tiger Department of Justice Janney Capital Markets Tony WibleAnalyst Color Media Best of Benzinga

 

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