Netflix stock took a tumble on the news that Netflix ended its deal with movie distributor Epix.
The deal, which runs through September, means Netflix will lose the rights to stream Hollywood blockbuster titles such as “The Hunger Games,” “48 Hours” and “Selma”.
Epix is jointly owned by MGM, Lion’s Gate and Paramount. The deal with Netflix was worth $1 billion.
Netflix stock plummeted to $106 a share from a high of $115 yesterday.
A Netflix spokesman released a statement today to put panicked investor’s minds at ease:
“While many of these movies are popular, they are also widely available on cable and other subscription platforms at the same time as they are on Netflix and subject to the same drawn out licensing periods.”
The spokesman reminded investors of a new deal with Disney which gives its 60 million subscribers access to Disney’s first-run movies.
Disney owns Pixar, Marvel and Lucasfilm — which is set to release the much-anticipated “Star Wars: The Force Awakens” in December.
Netflix stock split seven-for-one in July, allowing small investors the opportunity to buy the stock at reasonable prices.
