Time Warner (NYSE: TWX ) has launched its very own streaming service, but with a bit of a twist. The company has released an Internet streaming service that gives users access to the classics within the Warner Archives. Although this seemingly niche product doesn't directly compete with Netflix (NASDAQ: NFLX ) and Hulu on the surface, it could potentially pave the way for future competition from Time Warner, which is the parent of HBO. In this video, Motley Fool contributor Steve Heller discusses this announcement and what it could mean for Netflix investors.
The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.