Should Netflix Be Afraid Of This Torrent Site?

An open-source project with no funding and no business plan or model might be posing the biggest threat to Netflix, Inc. (NASDAQ: NFLX), according to an article on Quartz.

Popcorn Time provides a free service that allows users to access movies, TV series, documentaries, etc., without paying for it. Although many (including Netflix) allege that this is a form of piracy, sources within the undertaking say that they have checked with several lawyers, who assured the project was legal, according to the article.

"Popcorn Time does not control or manage any of the content that is accessible through the service; it just provides the method of access."

What Should Netflix And Wall Street Worry About?

Popcorn Time appears to be becoming increasingly popular. Quartz quoted BTIG analyst Rich Greenfield as "repeatedly" warning "that ‘Hollywood should be very afraid' of apps like Popcorn Time, which he says could threaten the financial strength of the entertainment business.

"'The reality is TV everywhere [i.e., online services from US cable TV providers and channels such as HBO Go] has gone nowhere while the piracy sites such as Popcorn Time have continued to innovate,'" Greenfield told Quartz.

Shares of Netflix traded recently at $473.66, down 1.4 percent.