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
RE: Please don't require cable provider login
3/2/2012 11:55:28 AM
I don't think it necessarily means commercials. I think it will be more exclusivity crap, like pay per view titles not conflicting with Netflix titles or something like that.
It is fine just the way it is. I think Reed is probably just worried that the others will get in bed with the evil cable companies/studios before they do.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Yahoo Appoints PayPal President as New CEO
January 4, 2012, 9:47 AM
F-22 Fighter Production Restarts, Last Delivery Coming Next Year
December 7, 2011, 2:14 PM
Netflix May Acquire Original Programming
March 16, 2011, 10:23 AM
150M Android Apps Still Susceptible to Heartbleed
April 24, 2014, 12:48 PM
Amazon Prime Pantry Will Deliver 45 lbs of Groceries to Your Door for $5.99 S&H Fee
April 24, 2014, 10:10 AM
NSA Spying Won't Impact Huawei's Growth
April 23, 2014, 8:24 PM
Amazon, HBO Team up to Bring HBO Content to Prime Members
April 23, 2014, 11:36 AM
U.S. Wants to Reduce Tension Over Internet Net Neutrality
April 22, 2014, 2:07 PM
AT&T Announces Plans to Expand Ultra-Fast Fiber Internet Network to 100 Cities
April 22, 2014, 9:36 AM
Most Popular Articles
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
HTC Hires Former Samsung Marketing Chief Who Developed "Galaxy" Brand
April 18, 2014, 6:00 PM
NASA Finds "Habitable Zone" Planet Sized Similar to Earth
April 18, 2014, 3:13 PM
Dotcom Bomb: U.S. Case Against Megaupload is Crumbling
April 22, 2014, 6:00 PM
Thanks to Government Crackdown, Chinese "Porn Cop" Has Watched 600K Adult Videos
April 21, 2014, 12:00 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
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
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information