Is Netflix Hurting Disney?

In a new study, researchers at Sanford Bernstein studied video streaming services and how much of children's content is viewed through those services. It found that through content deals with Disney  (NYSE: DIS  ) and Viacom  (NASDAQ: VIA  ) , Netflix  (NASDAQ: NFLX  ) is actually hurting Disney and Viacom.

Using data mined from TiVo  (NASDAQ: TIVO  ) viewer patterns, the report showed that with homes that streamed video entertainment, the tendency to watch live children's programming was dramatically reduced. The research suggests this wasn't an anomalous quarter; for the first eight months of 2011, Viacom-owned Nickelodeon experienced ratings increases of 11% for non-streaming TiVo users, and only 3% for those who do stream.

It appears that Netflix is hurting its partners' live ratings. As Fool.com analyst Lyons George explains in the video below, the question is whether this will help or hurt Reed Hastings' company.

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  • Report this Comment On December 15, 2012, at 10:24 AM, fc3worships wrote:

    I guess the issue is: is the gap between streamers and non streamers worth more or less than the content deal? If Disney's streamers grow by 5% less than non streamers, is that 5% worth $300 million? I would guess Disney comes out ahead with the $300m deal

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