US STOCKS-Theater companies fall on Netflix plan, some down for 3rd day

Thu Oct 2, 2014 11:35am EDT
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By Ryan Vlastelica

NEW YORK Oct 2 (Reuters) - Shares of movie theater companies fell on Thursday, with some down for a third straight session, after Netflix Inc announced a film production deal with actor Adam Sandler.

In the deal, Sander will star in and produce four films that will be shown exclusively on Netflix's streaming service, bypassing the theater system.

Regal Entertainment Group fell 3 percent to $18.94 while Cinemark Holdings Inc lost 2.5 percent to $31.72. AMC Entertainment was unchanged at $22.92.

Thursday marked the third straight daily decline for both Regal and Cinemark, with Regal down 5.4 percent over that period and Cinemark off 7.4 percent.

The theater chains were also pressured by Netflix earlier this week, when the online movie renter announced its first foray into feature film production, jointly producing the sequel to "Crouching Tiger, Hidden Dragon" with Weinstein Co. Both AMC and Regal said they would not show the film in their theaters.

Index snapshot at 1126 EDT:

* S&P 500 was down 11.25 points, or 0.58 percent.

* Nasdaq Comp was down 27.12 points, or 0.61 percent.   Continued...