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  (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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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.

quote:
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.


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