Looking more
like a regular TV network, Netflix has struck deals with a number of small multiple system operators and TiVo that will give the subscription video-on-demand service its own cable TV
“channel.”
Through TiVo set-top boxes in the U.S. on cable systems own by RCN, Atlantic Broadband and by Grande Communications, Netflix will get its own channel position -- as
well as its logo and name on TiVo’s electronic program guide.
These cable systems represents under 1 million cable subscribers.
Some analysts view this deal partly as
symbolic -- since customers could access Netflix through on-screen apps, as well as Roku, Apple TV (and the upcoming Amazon Fire TV), as well as other smart-TV boxes.
Still, these are the
first cable TV deals allowing subscribers to access Netflix content without switching back and forth between different set-top boxes and remote controls.
Netflix will retain its billing
relationship with customers -- meaning that Netflix subscribers will still need to pay their $8 a month for the subscription video-on-demand service.
Tom Rogers, president and CEO of TiVo,
has said about the deal: “Our view has long been that the marriage of linear television and streaming over-the-top (OTT) TV is the future of television, and Netflix has clearly emerged as a
must-have OTT service.”
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When you realize that Content is King the only option left is to create your own distribution channel. Once the Netflix channel launches we will see a new competitor to HBO. Netflix is all in. Look at the boards Hastings is a part of and you will see the strategy clearly. Its a brilliant move. Dish and Direct have Blockbuster in their Belly. Its only a matter of time for Netflix to dominate the landscape again.
Netflix has some great new shows with House of Cards and Orange is the New Black and they could be competitor to other channels like A&E or Showtime if they had their own channel.
Article is a bit choppy but if Netflix is on a TV "channel" is it still considered an OTT model? Or do we need a new name for this Hybrid?