Here's why Wall Street analysts don't care that Netflix lost 'Hunger Games' and a bunch of other blockbusters
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The films will include "Transformers: Age of Extinction," "Hunger Games: Catching Fire," and "World War Z."
But the loss of content does not appear to be that concerning to at least one Wall Street analyst.
In an analyst note, Raymond James & Associates reiterated its "outperform" rating, citing faith in Netflix's original content and its deal with Disney.
The analyst wrote that Netflix had materially improved its original content since the deal with Epix was signed in 2010, and that a first-run deal with Disney, which will go into effect in 2016, is better for the company.
"We view Disney as a step-up from the Epix deal both in terms of exclusivity (recall Epix was not exclusive) and content (Pixar, Marvel, and Star Wars garner large audiences)," the note says.
Exclusivity might also have been a large factor for Netflix in considering ending its relationship with Epix. "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," Ted Sarandos, Netflix's chief content officer at Netflix, wrote in a blog post.
For its part, Epix, which is owned by MGM, Lion's Gate Entertainment, and Viacom's Paramount, has replaced Netflix with Hulu. The two companies announced on Sunday they had signed a multi-year deal starting October 1.
Shares of Netflix were down 1.5% at $ 115.83 in midday trading on Monday.
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