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Netflix Hints At New HBO Deal

In another challenge to ad-supported broadcast and cable TV, Netflix may offer its subscribers the option of streaming to their TV sets premium movies and series from HBO and similar TV channels. Netflix subscribers already enjoy streaming access to some 12,000 non-premium movies and TV shows, along with DVDs.

Netflix revealed that it's considering such an idea through a question on a recent consumer survey. The company is trying to weigh the pros and cons of whether adding such a service (and paying the corresponding licensing fees) would entice new customers to start paying an extra fee, or whether people would rather continue watching HBO content the old-fashioned way.

Customers are responding with guarded support. Some indicate that the option might prompt them to abandon ad-supported TV altogether. Says one: "My 2 kids are big NetFlix users, so if I could get Disney Channel, Nick, or Cartoon Network, then I could ditch my cable TV subscription right away."

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Read the whole story at Ars Technica »

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