How To Legally Share Movies: Netflix, Inc. (NFLX), Facebook Inc (FB)

Those shows could be in the form of a download or streaming directly through Facebook’s site—or perhaps via a partner’s service, like Netflix. Of course there is also the more mundane option of allowing a third party to use the video information to post advertising for DVD sales.

Netflix, Inc. (NASDAQ:NFLX), meanwhile, gets customers used to sharing their viewing choices with others through the world leader in online social engagement. However, it doesn’t need Facebook Inc (NASDAQ:FB) to allow customers to share like this. Once customers are used to the idea via the big Facebook push, it can start to do the same thing on its own systems.

Netflix ultimately gets more people sharing, which creates a push to watch more and an increased stickiness to the service. That’s a clear win that helps to cement its position at the head of the online video industry.

Vital for Facebook

This partnership, then, will be good for both companies. However, such integration will be vital for Facebook if it wants to remain an industry leader. The power of the company is in its network of connections, but today those connections have limited financial appeal. This is why LinkedIn Corp.  (NYSE:LNKD) has been a market darling and Facebook Inc (NASDAQ:FB) hasn’t.

LinkedIn customers have reasons to pay extra for services, mostly predicated on the hope to earn more money. This has translated into steadily increasing revenues and a growing customer base. Greed, unsurprisingly, is a big motivator. Facebook doesn’t have that to offer and, once the company opened its books to the public, investors quickly grasped that fact.

A Buying Opportunity?

While LinkedIn and Netflix, Inc. (NASDAQ:NFLX) shares are fully priced, if not over priced, Facebook Inc (NASDAQ:FB) shares are still languishing below their IPO price. If the company can pull off more deals like this one, recent prices could present an opportunity for more aggressive investors.

The article How To Legally Share Movies originally appeared on Fool.com and is written by Reuben Gregg Brewer.

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