HBO and Just Struck a Streaming Deal. Is It Time to Sell Netflix, Inc. Stock?

Three Fools take to the Internet to assess the HBO’s streaming deal with Amazon and its potential impact on owners of Netflix, Inc. stock.

Apr 27, 2014 at 1:00PM

After years of trying to find a way to bring more of its content to streaming services, HBO last week struck a breakthrough deal with (NASDAQ:AMZN) that will allow Prime members to stream programming that's at least three years old. Should those who own Netflix, Inc. (NASDAQ:NFLX) stock be worried?

Host Ellen Bowman puts this question to Fool analysts Nathan Alderman and Tim Beyers in this episode of 1-Up on Wall Street, The Motley Fool's Web show in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.

Nathan says the deal makes sense on multiple levels. For HBO, the very idea of better monetizing old programming is a win. If Amazon customers also come to enjoy the content to the point that they become a cable subscriber, all the better. For Amazon, having HBO programming makes a stronger case for its high-margin Prime service.

And what of Netflix? Nathan says that the team-up isn't a mortal blow for the streaming sensation, though it probably behooves CEO Reed Hastings to stop taunting HBO in earnings announcements. Tim agrees while also noting that Time Warner (NYSE:TWX) chief Jeff Bewkes has spent years teasing Netflix as a second-rate content provider. Hastings' response? Spend hundreds of millions to make acclaimed originals such as House of Cards and Orange Is the New Black.

Where does that leave investors? Tim says owners of Netflix stock have nothing to fear for now. But that could change were Amazon and HBO to decide to experiment with premium priced access to current-season hits such as Game of Thrones or Emmy winner Veep.

Do you agree? How do you expect this deal to pay off for HBO and Amazon, and do you believe it will crimp Netflix stock returns? Click the video to watch as Ellen puts Nathan and Tim on the spot, and then be sure to follow us on Twitter for more segments and regular geek news updates!

Will this stock be your next ten-bagger?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one with life-changing potential. Everything you need to know to cash in now is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here for your copy and we'll reveal the name of this under-the-radar company.


Ellen Bowman owns shares of and Netflix. Nathan Alderman owns shares of Tim Beyers owns shares of Netflix and Time Warner. The Motley Fool recommends and owns shares of and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers