Print 20 comment(s) - last by KOOLTIME.. on Dec 28 at 3:21 PM

  (Source: venturebeat)
Verizon is reportedly thinking about purchasing Netflix in an effort to make its way into the video streaming/DVD rental business and to give Netflix a boost as well

Just last week, reports indicated that Verizon was preparing to launch a video streaming service that would rival the likes of Netflix and traditional cable TV. However, according to Fox Business, Verizon is reportedly thinking about purchasing Netflix in an effort to make its way into the video streaming/DVD rental business and to give Netflix a boost as well.
While Verizon has a large user base with its internet, phone, data and wireless services, it would have had to come up with a unique video streaming service that challenged already-established Netflix as far as content and subscription prices. This wouldn’t be an easy task, and taking hold of Netflix would give it an automatic 23 million customers.
The deal could be advantageous for Netflix as well, since it has been struggling this year after raising prices and changing plans back in July. From there, the once unstoppable video giant continued ticking off customers with antics such as the loss of Starz content after the premium subscription channel refused to renew its distribution deal, launching a DVD spinoff business called Qwikster requiring a completely separate account, and then changing its mind about the Qwikster idea altogether.

So far this year, Netflix stock has fallen 57 percent. Just last month, it announced a bleak 2012 outlook and its shares dropped to their lowest point since March 2010.

Despite the potential advantages that most reports are pointing out, the potential disadvantages could likely outweigh any benefits listed above. For instance, Verizon could get greedy and decide to limit the Netflix service to Verizon customers only. Also, Netflix has been known for its rebellion against traditional cable TV by offering its own business model with cheaper monthly services and a growing amount of content. If Netflix were to fall under Verizon's thumb, this likely wouldn't be the case anymore.

According to Porter Bibb, managing partner at Mediatech Capital, Verizon may partake in a "bidding war" for Netflix that could end in a $4.6 billion purchase by Easter 2012. However, neither Verizon nor Netflix have confirmed the rumor.

Netflix shares jumped 6.2 percent to $75.26 after the announcement Monday.

Sources: Fox Business, Bloomberg

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By Raiders12 on 12/13/2011 10:01:25 AM , Rating: 4
With Netflix and Verizon price increases I would love to see the new business model.

With Verizon's policies, they will take 1 DVD off each rental plan, cap data at 4 GB, and with Netflix policies they will supplement the cuts with additional charges of $2/mo.

RE: Classic
By kleinma on 12/13/2011 10:17:59 AM , Rating: 2
Verizon <> Verizon Wireless

Verizon owns about half of Verizon Wireless, but they are run seperately and very differently.

RE: Classic
By nafhan on 12/13/2011 10:43:25 AM , Rating: 2
Verizon owns about half of Verizon Wireless

Which side of that "about half" you are on makes a HUGE difference. Verizon owns a controlling interest Verizon Wireless. Plus, there's been talk lately about how Verizon is scaling back it's FiOS and hardline business in general in order to focus more on the wireless side of things.

RE: Classic
By ICBM on 12/13/2011 11:28:47 AM , Rating: 2
By half, you mean one half has reached the maximum they can rip people off, and the other half has room to milk more money out of their customers?

RE: Classic
By StevoLincolnite on 12/13/2011 11:59:09 AM , Rating: 2
With Verizon's policies, they will take 1 DVD off each rental plan, cap data at 4 GB, and with Netflix policies they will supplement the cuts with additional charges of $2/mo.

Actually if you look at the Aussie Telco's...
Generally they have fairly piss poor data caps to.
However allot of companies partner up with 3rd party video streaming companies (Or start their own) and offer them data free.
People then buy Internet and movies which also ties them into the internet plan because if they move to another provider it will no longer be offered data-free.

My ISP here in Australia offers it's own gaming servers, streaming services, DVD rental... File hosting with 10's of Terabytes of files and even Steam all data free so they don't impact my monthly allowance.

If the US goes this way it will be interesting.

RE: Classic
By sigmatau on 12/13/2011 2:03:55 PM , Rating: 2
WOW! People bitched and moaned about the $5 increase from Netflix.

Imagine what they will say when they get billed double for 1 dvd a month instead of what they are getting now.

But I like Netflix!
By nafhan on 12/13/2011 10:37:42 AM , Rating: 2
Verizon acquiring Netflix would mean a single company owns the entire stack from content creation to the physical delivery medium, and that's not a good thing for the consumer, as there is potential to lock consumers in at every level. I think if things could be divided up as below, and a single entity could not have interest in more than one tier it would be great for consumer choice and media innovation.

Tier 1: physical connection provider (cell tower owner, cable owner)
Tier 2: ISP / cable TV company (Verizon / Comcast)
Tier 3: media providers (Netflix, cable TV "channels", iTunes, etc.)
Tier 4: media creators

RE: But I like Netflix!
By kleinma on 12/13/2011 11:11:01 AM , Rating: 1
what content has netflix "created"???

RE: But I like Netflix!
By idiot77 on 12/13/2011 12:00:23 PM , Rating: 2
Check your glasses. They seem to need an update.

RE: But I like Netflix!
By callmeroy on 12/13/2011 1:42:27 PM , Rating: 2
Actually -- I don't know if its "done" yet or still in the works but Netflix is/has/was (covering all bases) developing their own series for exclusive distribution on their "network"...

RE: But I like Netflix!
By nafhan on 12/13/2011 2:08:25 PM , Rating: 2
I've read that Netflix is resurrecting Arrested Development as a Netflix streaming exclusive. Don't really want Verizon to be in control of that.

RE: But I like Netflix!
By idiot77 on 12/13/2011 12:05:32 PM , Rating: 2
But that's not freedom for corporations who are people!

You're killing jobs with all your regulations!

<Insert stupid Teabagger/Libertarian/Neocon BS here>

...Sounds like a great idea to me. Make markets free for competition instead of domination. Too bad anything with an (R) after it and 1/3 of anything with (D) after it would scream bloody murder.

Keep in mind....
By UsernameX on 12/13/2011 11:48:17 AM , Rating: 2
That Verizon just merged with several major cable companies as well, including Comcast. It is my understanding that Comcast will have access to all Verizon technology and be able to relable it 'Comcast'. That being said, Comcast already owns NBC, combined with Verizon... and now Netflix?

Interesting chain of 'buy outs' if you ask me...

RE: Keep in mind....
By Reclaimer77 on 12/13/2011 12:24:09 PM , Rating: 2
That's what I'm concerned about. Given the facts you just brought up, I find it impossible to believe Netflix owned and operated by Verizon will remain commercial free.

I just know it..eventually, there will be no option to watch video on demand without commercials. :( AT which point, I will simply be forced to pirate ALL media.

RE: Keep in mind....
By FITCamaro on 12/13/2011 3:14:46 PM , Rating: 2
Is 3-4 commercials in a 1 hour time span really THAT detrimental to your viewing experience?

Where do you think content comes from without ads? You're the last one I expect this from Reclaimer. If people truly want ad free television they better be prepared for $2-300 content bills. Because $7 a month ain't gonna cut it for a completely ad free model to work.

I have absolutely no problem with ads provided I enjoy the content. I merely ignore them. And it pays for the content to keep coming. Television is a business like anything else. No one in it works for free. Therefore you aren't going to get it for free. You're either going to pay rather large fees for it, or you're going to have ads.

As I've said, I'm going away from cable and satellite in May. I will spend about $30/month to get pretty much everything I want.

RE: Keep in mind....
By Reclaimer77 on 12/13/2011 4:16:05 PM , Rating: 1
I'm the last person you expected to not like commercials? What does that even mean.

One of the biggest attractions of Netflix is NO commercials. I don't understand why it's a big issue if I prefer at least ONE commercial free option for my personal on-demand entertainment.

Seems like you're confusing broadcast TV content costs with Internet streaming costs. The content on Netflix has already been paid for, technically, by the ads shown when it was originally broadcast and the movies by box office and DVD sales income. Everything on top of that, the licence fee's Netflix has to pay to the content owners, is pure gravy profit. You act like someone is being hurt here by me being against commercials. Who? This is NOT TV.

Is 3-4 commercials in a 1 hour time span really THAT detrimental to your viewing experience?

Go try watching HULU for a few hours. If the constant repetition of the same 2 commercials doesn't make you want to gouge your nervous system out with a rusty spoon... Look, I'm done with it. The older I get, the more important my time is to me. I've decided that watching about 30 years of commercials on TV was enough for me, I've done my time. Life is too short to waste on that bullshit.

If Verizon get's a hold of Netflix, there WILL be commercials. For no other reason alone, I'm personally against such a deal.

Verizon will ruin netflix
By Paulywogstew on 12/13/2011 12:02:33 PM , Rating: 2
As a Ex Verizon Wireless customer and an Ex Verizon FIOS customer this is terrible news if it goes through they will raise prices and limit content I can see it now there's a reason I'm a EX customer. Data caps, High smartphone data costs, and expensive voice plans. Then there's the FIOS side I had 15 down and 5 up for $49.99 a mo recently they decided to raise there prices to $54.99 dropped them like a bad habit. Now I have Charter 12 down 2 up for $34.99 Verizon can suck it.

RE: Verizon will ruin netflix
By undummy on 12/13/2011 2:54:19 PM , Rating: 2
Dumped Fios after dealing with non-stop non-working digital phone service, pixelation with TV service/VOD/dvr, and overrated internet expectations plagued by outages, excessive network latency, and shoddy Actiontec all-in-one piece of junk router.
Dumped Verizon wireless after waiting two years to get out of stoopid contract.
Converted dozens of neighbors and friends away from Vz.

You shouldn't need to pay $100's just to have some technology service.

Happy with local cable company and with Virgin Mobile.

People are too brainwashed into thinking that they need the biggest, bestest, fastest, greatest,... gimmick that is marketed toward them and that they grossly overpay for.

If big evil buys Netflix, I'll end my membership.

Man, this is kind of scary...
By Wolfpup on 12/14/2011 10:11:49 AM , Rating: 2
I love Netflix (disc service), I love the service in the rare times I have to call, I love that I can actually afford it.

Worried Verizon might change some or all of that... Heck, trying to get a non-insane person when you call is impossible. I've spent hours on with Verizon before, been transferred literally in circles for a super basic question, been lied to,'s the exact opposite in service...

all telcos are rippinjg customers
By KOOLTIME on 12/28/2011 3:21:12 PM , Rating: 2
Charging extra 10-15 bucks for the 4gb per month vs the 2gb limit per month of a new cell phone data plan has nothing to do with that about of usage amounts to a end user. Its all about money for them, as the data usage extra is nothing due to with the lines already in place to handle 100x those amounts. But the revenue they make for doing such is more money for them, nothing more then that.

All telcos currently have more dark-fiber then lit fiber for their long haul usage for data bandwidth.

Data capping is a for profit business model, not an actual barrier for transmission speed limitations, that would effect real world usage. As our current long haul sub systems that move the worlds data around are around 30% utilization most days, even with billions of daily users.

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