Dish to announce B'Buster-branded streaming service as Netflix flails? (VAR, THR, DH, NYP)

By Nancy Tartaglione-Moore

At a press conference scheduled for Friday, Dish Network is expected to announce its entry into the streaming-video market via a Blockbuster-branded service that could emerge as a rival to the recently troubled Netflix.

Variety reports that the title for the press event, "A Stream Come True," suggests such an announcement. Per the trade, the invitation promises the introduction of "the most comprehensive home entertainment package ever."

Meanwhile, Netflix' stock was off around 10% on Tuesday.

Janney Capital Markets analyst Tony Wible slashed his fair value estimate of the stock by 40% to $102, $68 less than he figured it was worth on Monday, according to The Hollywood Reporter.

"Netflix' irrational digital multiple has been applied to a dying DVD business over the past two years, which will now be clearly broken out and valued as a mature business," Wible wrote.

Regarding rising cost of streaming rights, Wible wrote that Netflix is moving toward a tipping point, "whereby it cannot afford its current content obligations."

"Investors need to be acutely aware of the risk as this point may be irreversible and could eliminate equity value in the streaming business," he continued. "Competitors could act to exploit this weakness."

Per Deadline, Caris & Co analyst David Miller slashed his target price to $103 from $185 and made his second downgrade in a week.

However, Deadline notes Barclays Capital's Anthony DiClemente maintained his recommendation for investors to 'overweight' Netflix stock which he says could hit $260.

Still, of the 31 analysts who follow the company, only 11 have a buy rating on the shares, says The New York Post.

Nearly 26,000 commenters have now weighed in on Netflix CEO Reed Hastings Sunday blog post regarding the recent 60% price hike and the split of the streaming and DVD-by-mail (now Qwikster) businesses.

The Post notes that some commenters have joked they wanted to get back with their 'ex,' referring to Blockbuster.

In other Netflix news, the company and Discovery today announced the renewal and expansion of their licensing deal. The press release is here at Deadline.