With all the brouhaha this week about Facebook being a credible Netflix competitor, Netflix-Login.com wanted to show a counterpoint to the story. While Goldman Sachs investment analysts think Facebook is a credible threat to Netflix, Bank of America investment analyst Nat Schindler disagrees: “Netflix’s huge increase in content has created a very high competitive barrier and with Netflix already a low cost service, we see few opportunities for an emerging competitor to pose a serious threat.” Nat argues that the Facebook deal is more of a threat to single movie rental, making it irrelevant to Netflix’s subscription business and a closer competitor to pay per view services from Comcast, DirectTV, and even Amazon. For now Additionally, people wan to watch movies on their TV, not their computer and Facebook has no connectivity in the living room!
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