Question of the Week: Does Facebook/Time Warner Deal Threaten Netflix, Cable Companies?

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Earlier this week, Time Warner agreed to test a new video rental service on Facebook. Users can now rent the “The Dark Knight” for 30 Facebook credits or $3, watching the Batman movie instantly on their PCs.

Some say this deal — if it works — could sound the death knell for Netflix, which saw its share price drop from $207.40 to $195.45 on the day of the announcement (March 8). Others, like this analyst, say the move doesn’t represent an immediate threat to Netflix.

My colleague Jon Marino thinks the move also poses a threat to cable companies. “Other media companies would be wise to follow Time Warner’s example, and stop hoping viewers will simply tune into their TVs to view movies,” Marino wrote in Wednesday’s peHUB Wire.

Take our short survey and let us know what you think.