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
RE: Verizon will ruin netflix
12/13/2011 2:54:19 PM
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.
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 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 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information