Stock Quotes in this Article: DISH, NFLX

 The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

WINSTON-SALEM, N.C. (Magnum Opus Financial) -- Dish Network's (DISH) stock has climbed about 15% in the past five days while Netflix's (NFLX) has slumped 30% after Netflix CEO Reed Hastings' announcemount that the company would split its services following its revised guidance and expected subscriber losses for the third quarter. ]


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    While not direct competitors yet, Dish plans to launch its streaming service as early as this week and the market is already planning on some migration from Netflix to Dish. As Dish rolls out its Blockbuster service, customers have another choice to evaluate during the forced transition to Netflix's Qwikster in addition to streaming options presented by Amazon (AMZN) and Wal-Mart ( WMT).


    So Dish clearly is benefiting from Netflix's coincidental and poorly timed announcements. Yesterday we wrote an article on why this move could be justified for Netflix longer term if it plans to ultimately spin off the unit. It also makes the business easier to evaluate for investors and manage operationally given the different dynamics of a physical media vs. a digital media business. Nonetheless, the timing was atrocious, and we can imagine several more gradual ways to migrate people to a new platform than forcing a new sign up process.

    However in our view, the extent to which these factors can drive Dish Network's price is limited for the time being. We currently estimate that Blockbuster & Equipment Sales contributes just about 10% to Dish Network's stock. Our price estimate for Dish is $29.30 implies a premium of about 10% to the marker price.

    See our complete analysis for Dish Network's stock here.

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