Thursday, October 24, 2013
Will US Cable Operators Embrace Netflix?
Two weeks ago Netflix stock went up over 20 points on the news FierceCable passed on that they are in talks with cable operators including Comcast and Suddenlink. This week they shot up further on news their subscriber base is growing rapidly. Netflix already has a cozy relationship with Cablevision, and has a more tightly coupled integration with Liberty Global and Virgin Media through Tivo.
Up to this point, some operators have gone so far as to create their own competitive VOD service. Operators have made clear choices to either embrace Netflix or treat them as a competitor. Netflix and the operators know that either way there are many users with both services and as reported in the original article in the Wall Street Journal, Netflix would "love to reduce the friction to the end consumer."