After Netflix Hack Attack Comes Market Strike – Share Prices Fall On Apple Rumours

[reaper]

Shares in popular streaming video service Netflix fell by some 30% in value this week on the basis of strong rumours about Apple entering into a similar service with Comcast. Netflix had been involved in a messy, public argument with Comcast about the cost of delivering streaming video services.

With tensions high between Netflix and Comcast despite a deal to ensure service delivery – a deal that cost Netflix a substantial fee – it seems that Apple are looking to take advantage. Apple has long harboured a plan to enter the world of streaming TV and video services, believing it to be a way to further expand their brand and income. Despite Comcast insisting they remain neutral in regards of companies that supply content to their internet and broadband customers, the lure of a prestigious deal with Apple might make them change this approach.

This is an issue that Netflix would rather not have to deal with. At present the company is still battling to close down the numerous fake emails and webpages going around that trick their customers into handing over their account details. Although the origins of the hacking attempt have been traced to Eastern Europe and Turkey, no arrests have been made in connection with it and people are still reporting that they are receiving the malicious emails.

Despite the threat of hackers and the pressure of maintaining their service to Comcast clients, Netflix are still the dominant force in streaming video service. An investment made less than two years ago in the company would today have brought a return on investment of over 300%, despite the current share price drop. With increasing competition from Amazon and, it seems, Apple, it remains to be seen if Netflix can remain the majority choice for consumers.