Netflix and other digital video streaming services have often been viewed as an alternative to cable providers and in most cases, the two services could really be considered as competitors to one another.
It’s for this reason that on the surface, it would seem somewhat unusual to hear that Netflix’s Chief Executive Officer Reed Hastings has been approaching US cable providers with the aim of partnering up with them. At first glance, this may seem incorrect, but seeing that it is the Reuters news organization that is reporting this information, there is some credibility behind the story. In addition to this, Reuters is referencing four different sources for their information on this subject.
Based upon the meetings that Hastings has been involved in, it would seem that Netflix is interested in adding their menu of digital content to the cable packages. This would include both TV and movie services. One may wonder why Netflix would want to do this, but the entertainment company is in somewhat of a bind. For instance, they are seeing Comcast come out with their own video on demand service known as Xfinity Streampix which will take a bite out of Netflix’s market share considering that the cable provider is willing to offer a lower priced service, one that will range between $0 – $4.99 per month. But, this isn’t the only competitor that Netflix sees on the horizon as there is also HBO waiting in the wing with their HBO GO service.
With all this in mind, it does seem reasonable that Netflix would like to find cable partners, the only question that remains is would there be a good reason why cable providers would want to work with them?