Single Touch Systems, a market leader in the mobile media industry, revealed on Thursday that it had sent a notice to the popular online video provider Netflix stating that it was in possession of some key patents that Netflix uses to provide its online video services.
And much to the joy of the mobile media solution provider, the company’s shares went up after news of the letter sent to Netflix spread in throughout market.
Single Touch’s shares increased by almost 14 percent, reaching $0.42 on the OTC market. Netflix’s shares, on the other hand, were down by 53 cents almost immediately.
“After years of establishing ourselves as a pioneer in mobility, and cementing our Internet Protocol position, it has become increasingly important for us to take the steps necessary to protect what we have already established," Anthony Macaluso, Single Touch’s Chairman said in a statement, as reported by Pro Active Investors.
Currently, Netflix has a massive user-base of about 25 million subscribers in Canada and the United States. The platform is used extensively for streaming TV shows, as well as movies via televisions, desktops, game consoles, etc.