Facebook films deal could threaten Netflix, says analyst

Netflix shares fell by 5.8% to USD195.45 on the Nasdaq just one day after Facebook announced its movie partnership with Warner Bros, as Goldman Sachs warns that the social network could rival Netflix in the future. Facebook Movies enables users to stream films on a movie fan page, and pay using their virtual currency account, and Netflix’s USD11.95 drop in share price could be an early indication that the firm is set to suffer from Facebook’s latest venture. “Facebook could some day become a credible threat to Netflix," says Goldman Sachs analyst Ingrid Chung.