Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Personal Tech
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Report: Netflix Courting Pay TV Providers To Ink Content Deals
Report: Netflix Courting Pay TV Providers To Ink Content Deals

By Jennifer LeClaire
October 14, 2013 1:36PM

    Bookmark and Share
Doing deals with pay TV providers would be consistent with Netflix’ positioning as it works to become more like HBO. Partnering with HBO would make a lot of sense for Netflix because one of its major expenditures is customer acquisition costs, which is one of the reasons HBO is reluctant to offer its services outside of cable, said analyst Ross Rubin.
 



In what would drive a major competitive advantage for Netflix, the streaming video service is reportedly in talks with large cable companies. The Internet movies pioneer could be squashing past disagreements with legacy rivals and inking partnership deals to stream more video content.

The Wall Street Journal is reporting that Netflix is talking to several U.S. pay television providers, including Comcast and Suddenlink Communications, to make its online video service available as an app on their set-top boxes. The Journal cited “people familiar with the matter.”

If the talks lead to a deal, it would mark Netflix’s first partnership with a U.S. cable TV provider. However, the company is no stranger to these sorts of deals. Netflix has already announced an agreement with Virgin Media, a United Kingdom cable operator, to stream its content.

Reinventing Pay TV

Netflix has nearly 30 million streaming customers. The monthly streaming service is $7.99. More content could mean more subscribers, but the company could not immediately be reached for comment on the rumored pay TV talks.

“[It’s] great for Netflix if they can get it done,” Laura Martin of Needham & Co. told MarketWatch. “It would be a service added to the bundle, and good for the cable industry if they can get economics from Netflix to use their high-speed wires into the home.”

Netflix is gaining momentum. In August, the company also inked a new multi-year licensing agreement with The Weinstein Company that will make Netflix the exclusive U.S. subscription television service for first-run films from TWC beginning in 2016.

"The deal that we've just completed with Netflix is probably the biggest deal in the history of The Weinstein Company and together, we are discussing ways to reinvent the pay TV experience so that the audience can get even more for their money," said Harvey Weinstein. "Their enthusiasm for movies of all kinds was the big factor in our choosing Netflix.”

Seeking Integration

We asked Ross Rubin, a principal analyst at Reticle Research, for his take on the talks. He told us inking deals with pay TV providers would be consistent with Netflix’ positioning as it works to become more like HBO.

“Partnering with HBO would make a lot of sense for Netflix because one of their major expenditures is customer acquisition costs, which is one of the reasons HBO is reluctant to offer its services outside of cable,” Rubin said.

“This would also allow for greater integration with the pay TV services that consumers already pay for. And it would allow for integrated billing, which would also reduce some of the friction in singing up for a Netflix account. So there are many reasons why Netflix would be interested in such distribution,” he added.
 

Tell Us What You Think
Comment:

Name:

John Riley:

Posted: 2013-10-14 @ 3:40pm PT
The deal with the cable operators has caused momo play to get into play and investors are just looking to gain from price movements. They should refer to technical and fundamental analysis, like this one: http://goo.gl/uicCwf



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Personal Tech
1.   FTC Sues Amazon for In-App Purchases
2.   Wireless Households Growing in U.S.
3.   LinkedIn Replaces Contacts Mobile App
4.   World Cup Online: Streaming Frenzy
5.   Review: Advances in Smartwatches


advertisement
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Review: Huawei's Mate2 Impressive
Many features for a reasonable price.
Average Rating:
FTC Sues Amazon for In-App Purchases
Alleges inadequate parental controls.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.