Netflix CEO Reed
Hastings believes cable might be the future for the company. “Netflix Said to Be Aiming for a Cable Partnership” by Amy Chozick from NYtimes.com reports,
“Over the last several weeks, Mr. Hastings and his top lieutenants have met
with major cable operators to discuss a way for Netflix to appear on monthly
cable bills”. The article reported Hastings saying "We are more and more a
classic cable network".
This “partnership” would essentially be your cable provider
offering Netflix as a service via your cable box and then having the charge
appear on your bill. The article points out partnering with cable would offer
Netflix millions more subscribers - currently they have 21.7 million.
Cable seems like an awkward next step considering the cable industry was not friendly with Netflix. Players within the cable industry blamed
Netflix for “cord-cutting” and felt the company was getting content at “cheap”
prices compared to what cable companies paid. Nonetheless, others jumped on to
streaming; Amazon, HBO, and Comcast have streaming service. These competitors come
with lots of cash, which can outbid Netflix for content.
Maybe that is the motivation for seeking a cable partnership - the “if you can’t beat them, join them” attitude. Partnering with cable could just be a means to more subscribers and a secure future. Netflix is coming out with an original show, which we won’t know if it succeeds until its reviews and release. If they produce more original content, they will compete with cable networks as they begin to look more like one. If they stay on the path of already produced content, they will still be competing with big competitors for content. Another consideration: will cable subscribers also pay for Netflix with Netflix reflecting the same lineup as movie channels?
I get their attitude that if you cannot beat them join them, but I am assuming they burned those bridges a long time ago when they were a big competition to the cable providers. I switch to the Blockbuster@home service through DISH when the prices went up with Netflix. A co-worker at DISH convinced me to try it out since it is only ten bucks. I absolutely fell in love with it and I love that I only have to worry about one bill for all my entertainment choices. The best part is that I get new releases 28 days before Netflix does. With all the cable companies, starting their own streaming service I don’t think Netflix has a chance.
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