Reed Hastings Sees Netflix Joining Forces with Cable Service Providers
March 1, 2012 10:57 AM
comment(s) - last by
Netflix CEO Reed Hastings
Hastings says it is a long-term goal in order to compete with HBO Go
CEO Reed Hastings said it's likely that the video streaming service will end up doing business with cable service providers in the future, despite being competitors now.
At the Morgan Stanley Technology, Media and Telecom Conference in San Francisco, California, Hastings said that many misconstrue "copycat competition" like Amazon Prime as the main competitors to his service, but mentioned that HBO's Go on-demand service is
the real competition
for his company. For instance, HBO just announced that Go would be on Xbox Live beginning April 1, which will give users an alternative to Netflix.
"It's very easy for companies to over-estimate copycat competition and not see the real threat," said Hastings. "You go back to 1995, and you talk to the Netscape sales force and ask them what their number one competition is, and they'd say Spy Glass, which was taking a little market share from them at the time. But the real competition was Microsoft and bundling."
This is why Hastings sees Netflix eventually joining forces with cable service providers in the future. Instead of focusing on the likes of Amazon Prime, Netflix wants to give cable service providers an alternative to HBO's Go on-demand and hit the real competitor right where it hurts.
"It's not in the short term, but it's the natural direction for us in the long term," said Hastings. "Many [cable service providers] would like to have a competitor to HBO, and they would bid us off of HBO."
Netflix has already began to take HBO on by
releasing original programming
such as "Lilyhammer," which premiered February 6, and "House of Cards," which will debut later in 2012.
This article is over a month old, voting and posting comments is disabled
if you cant beat em, join em!
3/1/2012 3:18:21 PM
Seriously, dont fight against HBO, they have some of the best serial content out there. Do whatever you have to do to get HBO premium shows on Netflix. I'd pay more for expanded content on Netflix (like many others would), but i will NOT ever subscribe to cable again.
Get me more content, show me the lines expanding, and i'll gladdly pay more.
"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive
Netflix Dives Into Original Programming with "Lilyhammer" Series Before "House of Cards"
January 4, 2012, 7:41 AM
Verizon to Challenge Netflix, Cable TV with Video Streaming Package
December 7, 2011, 10:36 AM
Netflix Dominates Digital Movies Streaming
March 15, 2011, 2:02 PM
FBI's Facial Recognition Database to Have 52 Million Criminal, Non-Criminal Photos by 2015
April 15, 2014, 2:56 PM
Microsoft's Anti-Google "Scroogled" Campaign May Have Ended
April 15, 2014, 2:44 PM
FAA Requiring All Flights to Have GPS Tracking System by 2020
April 15, 2014, 1:25 PM
Google Updates Terms of Service to Disclose Email Scanning for Targeted Ads
April 15, 2014, 9:29 AM
Netflix Speeds Increase for Comcast Users Following Recent Agreement
April 14, 2014, 8:02 PM
44 Percent of Twitter's Total Users Have Never Sent a Tweet
April 14, 2014, 7:55 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
iPad Exploiter is Freed by Federal Appeals Court
April 11, 2014, 7:40 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information