Netflix talking to pay-TV providers to expand availability: Reports
14 Oct 2013
In a bid to expand availability to US pay-TV platforms, Netflix has been holding talks with several US pay-TV providers, The Wall Street Journal report.
While according to the publication's sources, the discussions were still in their early stages, Netflix was said to be pushing to have its online video service available as an app on the pay-TV providers' set-top boxes.
Currently, customers need to have internet-connected TVs or switch to a different TV-input for Netflix-connected devices to stream content from Netflix.
Among the providers Netflix had approached are Comcast and Suddenlink Communications, and if plans came to fruition, Netflix would have its first partnership with a US cable provider, following its recently announced partnership with cable operator Virgin Media in the UK.
However, the report said that Netflix's demand to have the cable providers adopt its special technology for improving the delivery of its streaming video had been delaying the discussions.
It said, ''A hangup in the talks with at least two operators is that Netflix is insisting that they also take on its special technology designed to improve the delivery of its streaming video, people familiar with the matter say. The technology is part of its Open Connect program and consists of special servers Netflix wants to connect directly into broadband providers' networks. Netflix believes the technology is critical to make sure its service provides the best quality to viewers, the people say.
''The technology is part of its Open Connect program and consists of special servers Netflix wants to connect directly into broadband providers' networks. Netflix believes the technology is critical to make sure its service provides the best quality to viewers, the people say.
According to commentators, the talks suggested cable operators increasingly saw Netflix's $7.99 monthly service as a tool to attract and retain customers, rather than a threat that would lead to cord-cutting (the practice of consumers taking advantage of the availability of high-speed internet connections and not paying for TV). With cable service integration, users would be able to view and watch shows without switching inputs and might help cable operators promote their won on-demand offerings according to the people.
Newer set-top boxes blend internet-based programming with traditional pay television, a development that could lead to expansion in the event Netflix reached accords with cable providers.
The Los Gatos, California-based company, had 35.6 million paying subscribers globally as of June. After, having relied on game consoles, Blu-ray players, smartphones and web-TV devices such as Roku for growth it had signed on two European cable systems.
