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.
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
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
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
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