Verizon May Be Pondering Netflix Purchase
December 13, 2011 9:19 AM
comment(s) - last by
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
, 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
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.
jumped 6.2 percent to $75.26 after the announcement Monday.
This article is over a month old, voting and posting comments is disabled
12/13/2011 11:28:47 AM
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?
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
Verizon to Challenge Netflix, Cable TV with Video Streaming Package
December 7, 2011, 10:36 AM
2012 Not Looking So Hot for Netflix; Shares Drop to Lowest Point Since March 2010
November 22, 2011, 5:34 PM
Netflix Can't Make Up Its Mind: Qwikster is No More, DVDs to Remain at Netflix.com
October 10, 2011, 9:27 AM
Netflix to Spin Off DVD Service with Qwikster, CEO Apologizes for "Lack of Communication"
September 19, 2011, 6:35 AM
New Netflix Plans/Pricing Announced
July 12, 2011, 7:21 PM
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Nationalist Hackers From Turkey Cause Chaos, Deface Dozens of Sites
March 16, 2015, 12:29 PM
Google Barrages Firefox Users With Warnings After Mozilla Snubs it for Yahoo!
March 16, 2015, 10:27 AM
More Than a Feeling: Facebook Removes "Feeling Fat" Emoji Amid Backlash
March 12, 2015, 4:23 PM
Apple-Exclusive "HBO Now" Debuts at $14.99/Month; Apple TV Price Cut to $69
March 9, 2015, 3:00 PM
ISIS Supporters Threaten "Charlie Hedbo style" Attack Against Twitter Employees
March 3, 2015, 4:26 PM
Most Popular Articles
HTC One M9 Launches Tomorrow Overseas
March 20, 2015, 2:33 PM
Windows 10 Build 10041 Rolls Out: What's New in Pictures Pt. 1
March 19, 2015, 2:45 PM
FAA Grants Amazon Prime Air an "Experimental Airworthiness Certificate"
March 19, 2015, 9:14 PM
Samsung, Dell, Pegatron to Preinstall Microsoft Office 365 on Android Devices
March 23, 2015, 4:02 PM
Acer Iconia Tab 10 is a Bargain at $200 w/ WXGA, $250 w/ WUXGA
March 20, 2015, 2:11 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information