Will Facebook’s Movie Offerings Destroy Netflix?

Facebook recently added another weapon to its huge arsenal of destruction last week when it teamed up with Warner Brothers to offer movie rental in the US. Will this new feature introduced by the social networking site, damage the companies that offer this as their main business?

Namely Netflix, who offer customers the latest movies and TV shows to rent via streaming. The online service is now in danger of losing some of its trade to a much bigger name in the future. For the meentime, Facebook is only renting out one of Warner Brother’s finest films, 2008’s The Dark Knight. The revamped Batman sequel is available to watch on your account using the virtual currency, Facebook Credits.

The Denverpost has pointed out that the deal between Warner Bros and Facebook has already hit Netflix, as thier shares dropped by at least 5% last week. Will Facebook’s ability to distribute media in a similar way to Netfilx, signal future implications for the rental service? Luckily for now, the social networking site is only offering 1 movie, but this catalogue will steadily start to fill with more titles. Netflix’s ability to stream TV shows is what could keep them afloat; they recently made a deal with CBS which will earn them more business.

It is likely that Facebook will eventually expand movie rental to Europe, with a huge new revenue stream being generated from the extra use of Credits. It may not be long before other film studios take an interest in shaking hands with Facebook and having them rent their movies out.

This is great news for the social world, but looks to be a nightmare for rental services and the investors in these sites. Will Facebook’s movie offering bring sites like Netflix to an end, would you rent from them? Leave us a comment with your views.