Netflix is reportedly in discussions with cable companies to consider adding the service as a cable TV on-demand option, reports Reuters.
Partnering with cable TV providers rather than competing with them via cord cutting would represent a key move for Netflix.
CEO Reed Hastings has pointed out that cable TV providers are looking for a competitor to HBO.
“At least one cable company could end up experimenting with offering Netflix by the end of the year, even though the company would have to modify its content licensing deals, which currently typically don’t allow Netflix to bring programming to cable set-top boxes,” adds The Hollywood Reporter.
A deal like this, with pay TV distributors, could help Netflix with survival as it struggles somewhat, “but would force the company to reduce its terminal revenue opportunity by sharing average revenue per user with [distributors],” explains analyst Tony Wible of Janney Montgomery Scott.
No Comments Yet
You can be the first to comment!
Leave a comment
You must be logged in to post a comment.