Wells Fargo’s Jennifer Fritzsche in a brief note to clients reflects on Coinstar‘s (CSTR) announcement today that its on-demand Internet video service with Verizon Communications‘s (VZ), called “Redbox Instant by Verizon,” has inked agreements with content providers such as Warner Bros. and with device makers such as Samsung Electronics (005930KS), and will be offered in beta for $8 per month.
The service will also give customers “credits” to use for physical DVD rentals at Redbox Kiosks, the company said, for an additional $1 per month.
Fritzsche, who has an Outperform rating on Verizon, and does not formally cover Coinstar, writes that “While we do not expect this business to be material to revenue, Redbox Instant positions VZ in case the OTT [over the top] market expands and takes share from the traditional cable / IPTV market in the future, in our view.”
Verizon shares today are up 33 cents, or 0.7%, at $44.77. Coinstar stock is up $1.33, or 2.6%, at $52.14. Coinstar competitor Netflix (NFLX) is up $5.20, or 6%, at $91.28 after Morgan Stanley‘s Scott Devitt reiterated an Overweight rating on the shares and raised his price target to $105 from $80, writing that the recent Walt Disney (DIS) content deal should boost Netflix’s future negotiations with content providers.
No comments:
Post a Comment