Netflix May Cut Deals With Cablers

netflixNetflix is getting closer to what a U.S. TV cable network looks like -- in part.

The big subscription video-on-demand service is reportedly in talks with big cable operators, such as Comcast Corp. and Suddenlink Communications, to provide its service on set-top boxes.

But with one caveat: Cable companies have to use Netflix app/technology, that includes a private content delivery network, all this to ensure the best-quality video. The initial report came from The Wall Street Journal.

This move follows deals Netflix has made in Europe with cable operators, such as Britain's Virgin Media and Sweden's Com Hem companies.

For U.S. cable operators, making agreements with Netflix could seemingly slow down the activity of potential "cord-cutting" by consumers. In turn, Netflix, would get the benefit of U.S. cable operators faster broadband speeds. Plus, cable operators could use the inclusion of Netflix as a negotiation tactic against TV networks/stations that increasingly demand higher retrans fees.

For some time now, Netflix has made numerous deals with broadband-enabled TVs and other video devices where consumers can access the video-on-demand service.

The talks are said to be in the preliminary stages.

2 comments about "Netflix May Cut Deals With Cablers".
Check to receive email when comments are posted.
  1. Doug Garnett from Protonik, LLC, October 15, 2013 at 11:13 a.m.

    Saw this press release yesterday. What's funny is the release is made to look like Netflix is imposing quality criteria. Clever positioning by Netflix to try to make it look like they deliver high quality...really? But, heck, they've always been great at manipulating the press release (as long as the fact of the release didn't do something like raise their prices to try to get a viable business model). Not that I know what's going on inside, but this doesn't make sense. What does make sense would be cable companies demanding far better quality from Netflix than Netflix delivers on average.

  2. Bobby Campbell from Adkarma, October 16, 2013 at 9:39 a.m.

    Cable is in serious trouble, they should kill their business and embrace the disruption. Totally remake there model before it is to late and use their advantages to get ahead of providers like netflix.

Next story loading loading..