Soon after Google (NASDAQ:GOOG) announced its movie rental app on Android, Netflix (NASDAQ:NFLX) released its app for the same platform, which can be found on the Android Market. The app will be initially available for only selected Android phones like those from HTC including the Incredible, Nexus One, Evo 4G and G2 as well as the Samsung Nexus S. [1] For Netflix, we believe this opens up a quickly growing distribution channel, which will allow it to fend off competition from Apple’s (NASDAQ:AAPL) iTunes, Hulu, video on demand (VoD) services from pay-TV providers and Google.
This launch will steal some of Google’s thunder as Netflix will compete with and slow the adoption for Google’s movie rental app. That said, the adoption for Android based devices should continue to take off which bodes well for both companies.
Our price estimate for Netflix stands at $153, which is around 35% below market price.
See our complete analysis for Netflix.
- Netflix Finally Arrives on Some Android Phones, GigaOM, May 12 2011 [↩]
