PSound
09-28-09, 06:52 PM
Sony Computer Entertainment America’s $100 price cut to the PlayStation 3 video game system should drive subscriber growth for online DVD rental pioneer Netflix, a Wall Street analyst said. But the result would primarily stem from Sony’s price cut forcing Microsoft to drop its price on the Xbox 360.
Eric Wold, who covers Netflix for Merriman Curhan Ford & Co. in New York, said Sony’s price cut was immediately emulated by rival Microsoft, which slashed $100 from the Xbox 360 Elite system, which he said would likely result in incremental subscriber growth for Netflix.
A year ago, when Microsoft and Netflix first announced their partnership with Xbox Live, the news generated more than 1 million new Netflix subscribers in less than four months.
Los Gatos, Calif.-based Netflix does not have a streaming deal with Sony — a scenario many say isn’t likely change with the existing Netflix-Microsoft partnership.
Indeed, Wold said he projects Netflix will add 5.3 million gross subscribers (excluding non-renewals and terminated memberships) during the fourth quarter of this year and first quarter of 2010, which represents a 18% increase over the 4.5 million gross subscriber additions in the 2008 holiday period.
“Netflix is positioned to continue to benefit from the market share shift within the home video rental industry away from brick and mortar locations to online subscription and rental kiosks,” said Wold in a note.
http://www.homemediamagazine.com/netflix/analyst-game-console-price-cuts-a-boon-netflix-17156
Eric Wold, who covers Netflix for Merriman Curhan Ford & Co. in New York, said Sony’s price cut was immediately emulated by rival Microsoft, which slashed $100 from the Xbox 360 Elite system, which he said would likely result in incremental subscriber growth for Netflix.
A year ago, when Microsoft and Netflix first announced their partnership with Xbox Live, the news generated more than 1 million new Netflix subscribers in less than four months.
Los Gatos, Calif.-based Netflix does not have a streaming deal with Sony — a scenario many say isn’t likely change with the existing Netflix-Microsoft partnership.
Indeed, Wold said he projects Netflix will add 5.3 million gross subscribers (excluding non-renewals and terminated memberships) during the fourth quarter of this year and first quarter of 2010, which represents a 18% increase over the 4.5 million gross subscriber additions in the 2008 holiday period.
“Netflix is positioned to continue to benefit from the market share shift within the home video rental industry away from brick and mortar locations to online subscription and rental kiosks,” said Wold in a note.
http://www.homemediamagazine.com/netflix/analyst-game-console-price-cuts-a-boon-netflix-17156