BSkyB Starts Streaming Service
In a move to compete with online-streaming rivals Netflix Inc. (NASDAQ:NFLX) and Amazon.com’s (NASDAQ:AMZN) Lovefilm, British Sky Broadcasting Group Plc (BSY) will launch its own Internet-television service.
Claudio Aspesi, an analyst at Sanford C Bernstein in London, said, “It’s a very quick and sharp response to the Netflix launch and an indication that management is extremely pragmatic.”
After a less-than-stellar second quarter, the U.K.’s largest pay-TV broadcaster, decided it needed to bump up its game, offering streaming movies and TV shows starting this month. BSkyB has more than 10 million subscribers and added 40,000 TV customers in the second quarter, a number significantly below analysts’ expectations. But the Isleworth, England-based company continues to think outside the traditional cable box, with distribution plans in the works for mobile phones and game consoles.
Here’s how these stocks are reacting to the news:
Netflix, Inc. (NASDAQ:NFLX): NFLX shares recently traded at $122.90, down $2.53, or 2.02%. They have traded in a 52-week range of $74.25 to $304.79. Volume today was 693,590 shares versus a 3-month average volume of 8,479,720 shares. The company’s trailing P/E is 28.85, while trailing earnings are $4.26 per share.
Amazon.com Inc. (NASDAQ:AMZN): AMZN shares recently traded at $192.24, up $0.09, or 0.05%. They have traded in a 52-week range of $160.59 to $246.71. Volume today was 640,015 shares versus a 3-month average volume of 5,924,230 shares. The company’s trailing P/E is 101.34, while trailing earnings are $1.90 per share.
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