SHARES in Netflix plunged as much as 11 per cent yesterday on back of news that rival Amazon had struck a three year deal with video streaming channel Epix to add about 3,000 movies to Amazon's video streaming library.
The deal will boost Amazon’s Prime Instant Video service, a streaming service for subscribers, from its current title count of 22,000 to more than 25,000.
The deal gives Amazon video subscribers access to movies such as Iron Man 2 and The Hunger Games from Epix's Hollywood studio owners. Netflix has been paying $200m (£158m) a year since 2010 for exclusive rights to Epix movies but the deal expires this month.
"It gives Amazon Prime members a lot less reason to also have a Netflix subscription,” a Morningstar analyst said.
Netflix shares fell 6.3 per cent to close at $55.93, with the stock dropping as low as $53.13.
City A.M. Reporter