Netflix Is Primetime Thanks To Apple ( NFLX, AAPL, TWX, VZ )

Netflix, Inc.(NASDAQ:NFLX): Getting Boost From Apple’s Latest iPad

Netflix, Inc.(NASDAQ:NFLX) shares have been showing solid uptrend over the past few months, followed by a sharp correction in the stock between August to November 2011, which took the stock to its 52-week low with a fall of about 78% from its record high.

The stock had been investor’s favorite stock, when the company was showing increased revenue and profitability along with sharp rise in its subscribers. However, those favoritism short lived as the company’s subscribers started eroding due to sudden increase in its product price, which was later \on reversed. However, still it couldn’t regain trust from its subscribers and the short sellers staring taking heavy short position in the stock.
After hitting 52-week low in late November 2011, the stock made an attempt to recover and it did very well with the shares of the company more than doubled to around $130 from $about $63 in just over two months.

Now, the company has been trying to diverse its business by partnering with multiples cable operators to provide their services via direct sign ups. The recent gains was largely driven by the company’s strengthened alliance with Apple Inc.(NASDAQ:AAPL) by allowing Apple TV users to sign up for their services directly through their device with their iTunes accounts, according to Bloomberg.

The recent launch of latest version of iPad by Apple would make the shares of Netflix volatile as the new Apple TV will feature 1080p programming including iTunes movies and TV shows, Netflix, Vimeo, photos and more in HD.
CEO Reed Hastings said, “It’s not in the short term, but it’s the natural direction in the long term. The biggest hurdle is how revenue is shared.” The service will be similar to Time Warner Inc.(NYSE:TWX)’s HBO channel in that it will offer premium content.

The company’s decision to make a deal with cable operators would strengthen its bargaining power with its key rivals such as Verizon Communications Inc.(NYSE:VZ) and Comcast Corporation(NASDAQ:CMCSA).