The story took off, and now seems to be crashing, even faster than Herman Cain’s presidential campaign. Pay TV’s three biggest distributors — Comcast, DirecTV, and Dish Network — aren’t interested in carrying Netflix, industry news service SNL Kagan reports. That could dampen some of the excitement about the idea that built up this week after Reuters said that Netflix CEO Reed Hastings “has quietly met with some of the largest U.S. cable companies in recent weeks” to talk about having them offer his video streaming service. It added that by year end at least one cable company could offer Netflix on an experimental basis. The story grabbed everyone’s attention: Hastings recently told an investor group that cable operators would love to become less dependant on HBO — and offering his streaming service “might be very powerful, especially as we have more original content.”
A pay TV alliance with Netflix would have far-reaching ramifications. Analysts speculated that it might lead Time Warner to offer its HBO Go streaming service directly to consumers, instead of requiring them to subscribe first to cable or satellite. If Comcast picked up Netflix, then it would raise questions about the cable giant’s faith in the streaming service it recently launched, Streampix. Similarly, Dish execs would have to explain how Netflix could co-exist with their own Blockbuster rental and streaming service. But if these heavyweights are out of the picture, then it’s hard to see how Netflix could build a meaningful business on pay TV. Comcast, DirecTV, and Dish account for about 56% of the country’s 100M pay TV households. You get up to 60% if you throw in Verizon’s FiOS, which presumably won’t want to help Netflix while it prepares to introduce a rival video service in a joint venture with Redbox.


netflix should just buy epix or starz.
Netflix’s management is a joke. At this rate, they’ll be out of business inside 5 years.
“More original content”? Hilarious. Thus far, their original content still = Zero. None that is available to watch, at least, just as they have fewer and fewer interesting films available to watch b/c they won’t pay for fair licensing.
Earth to Star!
Netflix offered Starz over $300 million to stream their shows but Stars said no. This isn’t about Netflix refusing to “pay for fair licensing”. This is about Starz and other networks charging insane amounts of money for more often than not crappy programming that’s impossible to make profitable.
300M is not enough. You’re insane.
Original Starz deal was 90mm and Starz got hosed. Disney got pissed off in the process, too.
Netflix gave 1bn to EPIX (Lionsgate, MGM, Paramount) to stream that library over 5 years, but the streaming windows are narrow on the A-titles. (The Godfather I and II only available for a few months at a time)
Viacom should buy Netflix, and that will settle that. That will solve Paramount’s cash and paytv problem in one fell swoop. At one point i heard a rumor they were kicking the tires..
-RnsW
Keep in mind that the consumer doesn’t NEED their cable tv provider to link to Netflix since you can stream Netflix via a blu-ray player, a laptop, Apple TV or any number of other devices. If Netflix continues to add content and value, then more and more cable tv customers will wake up and ask “Why am I paying $100+ a month for cable when I can get most of my content for a fraction of that price via the internet and renting dvds?”
Millions are already “cutting the cord” on their cable box and it’s gotta have cable execs in a panic. If not, they’re idiots.
Keep in mind that the consumer doesn’t NEED their cable tv provider to link to Netflix since you can stream Netflix via a blu-ray player, a laptop, Apple TV or any number of other devices. If Netflix continues to add content and value, then more and more cable tv customers will wake up and ask “Why am I paying $100+ a month for cable when I can get most of my content for a fraction of that price via the internet and renting dvds?”
Millions are already “cutting the cord” on their cable box and it’s gotta have cable execs in a panic. If not, they’re idiots.
Um. What’s with the out-of-left-field political jab? What is this? Entertainment Weekly? How about you focus your articles on the subject at hand huh, Mr Lieberman?
I’m so frustrated with Netflix. Its leaders just don’t get it. Netflix became popular because it allowed people to rent and stream a huge library of recent and classic movies. I think Netflix would be wise to use its ‘original content’ budget on paying the studio license fees instead.
We don’t need another cable channel. But we sure could use a pre-2011 Netflix.
Netflix will be success! Because this is the people want to watch in future! No want wants a traditional way of watching contents tuning to TV timings! of course content is king, so they need to have more varieties and gets some live broadcasting contents and give consumer the TiVo functionality! Cheers!
The only commentor here who got it was Anonymous. This is about cable providers waking up and realizing they were putting themselves out of business. This will be the end of Netflix.
Netflix + Roku Box = great! Found MI5 (Spooks)! Over 80 episodes! The British can really get it together on this type of series! Far better written, directed & acted than most anything on this side of the pond! Now, if only Roku signs on with Blockbuster as well! Advice to Netflix…stop fiddling around with a good thing! Relax, you’ve really done it!
I don’t know if cable will not be quite unimportant ten years from now.
Cable is like an all-you-can-eat restaurant.
And it’s not even cheap. And you pay for all the garbage you’re not watching.
Viewing on demand looks very much like the future, and programming at a certain time looks like the past.
If I can link to any show any time I don’t even need a DVR.
In front of this background, is it really so important that Netflix hooks up with cable providers?
Currently yes. Because you can’t have on demand viewing without content.
And you can’t just get content out of thin air. It needs a creative infrastructure Netflix doesn’t have.
But who knows what will happen. Maybe they go talent shopping and give some overlooked producers and development people the chance of their lives.
One more serious competitor would shake things up a bit.
I love HBO, but we need more like it.
And with the possible demise, hopefully we get rid of these hundreds of idiot channels who can only survive because they are part of a cable package – and even non-couch potatoes have to get them.
I only watch content on DVD by the way. Cable, as it is now, is a waste of time.
For the cost of a $5 HDMI cable, I connected my flatscreen TV to my desktop computer which prompted me to cancel my cable subscription. Between a free Hulu account plus Netflix streaming and DVDs, I have access to anything that I want to watch, and I figure that I’ve saved about $3,700 in cable fees over the past 3+ years.
Amazon buy Netflix and take over the world!