Wednesday, March 7, 2012

Netflix is in talks to partner with cable providers for bundles, possibly higher quality streaming

Recently, CEO Reed Hastings hinted that it might be partnering with cable companies to bring  its streaming service with cable bundles. Reuters is reporting the company has met with "some of the largest US cable companies" to discuss partnerships. The report goes on to mention it could stream through cable set-top boxes and appear as another line item on customer's bills, however for that, Netflix would have to rework content licensing agreements that bar its service from cable boxes, which has kept it off of TiVo Premieres offered by companies like Suddenlink and RCN.


What the deals being discussed could bring is a setup where your cable company offers bundled services (TV, internet, etc.) that include premium access to Netflix. Maybe higher quality audio and video streams that don't count against bandwidth caps, or even a discount from the standard rate. Cable companies could obtain revenue from Netflix under the deal, and also keep customers around thanks to the advantages of the bundled offerings, while Netflix could have more reliable distribution for its video, and a leg up on competition from Amazon and Redbox / Verizon FiOS.


What are your thoughts on this?

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