Print 7 comment(s) - last by troysavary.. on Oct 15 at 1:46 PM

Cable companies aren't so sure they trust Netflix

Netflix is currently talking to cable companies in hopes of putting its app on their set-top boxes, but some are still concerned about forming bonds with the Internet video subscription giant. 

According to The Wall Street Journal, Netflix is currently in talks with cable TV providers like Comcast Corp., Suddenlink Communications, Verizon Communications Inc., Time Warner Cable Inc. and AT&T Inc. in an effort to get its app on their set-top boxes, but no deals have been made yet. 

If Netflix were to strike such a deal, it would be a first for the company in the U.S. Netflix has already made an agreement with Virgin Media Inc. in the U.K. 

Right now, customers who want to watch Netflix titles on their TVs need Internet-connected televisions or must switch to a different TV-input to get a Netflix signal from web-connected devices. A web app would allow customers easier access to Netflix's movie and TV show library, and will likely increase Netflix's subscriber pool.

Cable companies could also potentially benefit from a Netflix partnership because they believe Netflix users are more likely to buy faster and more expensive broadband packages. Also, there are other possibilities like having Netflix programming as a back-up during channel blackouts.

However, many cable providers are still wary about a partnership with Netflix. The two are considered rivals because Netflix disrupted the traditional way of consuming movie/TV entertainment. Traditionally, customers paid for expensive cable packages -- but when Netflix came along with its cheap monthly subscriptions and a vast library, cable companies have been keeping Netflix at arm's length to protect their business model. 

Some providers worry that Netflix will use the app to eventually offer pay-per-view movies or other services that could compete with the cable company's offerings. 

Another issue is that Netflix wants cable providers to accept its technology for enhancing the delivery of its streaming video -- and because this technology consists of special Netflix servers that connect directly into broadband providers' networks, not many are onboard. 

But Netflix will continue on in hopes of bringing new customers to its service, as tackling cable companies has been a longtime battle for the Internet video company. 

Source: The Wall Street Journal

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RE: I don't see this happening
By Monkey's Uncle on 10/15/2013 8:37:18 AM , Rating: 2
Sounds like Bell.

Checked in my area and we don't get fiber where I am. Too bad cause that looks mighty attractive.

Yeah, you can get some pretty good deals with the whole 'I'm leaving unless you can give me a reason to stay' negotiations. Watch out though as those 'customer retention' bonuses are usually only good for a year or so It means you have to go thru it all over again in a year else face being bumped up to an even higher price for the package in a year or so.

RE: I don't see this happening
By troysavary on 10/15/2013 1:46:24 PM , Rating: 2
Well, it is Aliant, which is mostly owned by Bell now. It wasn't this good of a deal at first, but I called and told them a Rogers salesrep called me (that part was true) and I was tempted to switch. They gave me the great deal if I promised to stay for 3 years.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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