Netflix bids to become cable channel

By Jannee Sullivan

The popular on-demand, media streaming company Netflix was reportedly in talks with cable providers about a partnership that would allow people to stream Netflix movies by adding Netflix to their monthly cable bill. The partnership could be tested in about a year, according to Reuters.

The move comes as a step up in the competition with HBO, the award-winning premium cable TV station.

With nearly one-third of Netflix users considering canceling their service, according to a survey by Magid and Associates, a cable partnership could allow Netflix to increase their client base and retain subscribers by making it easier to access Netflix.

Many cable companies, including  Comcast, have knocked the deal.

Comcast recently launched its own online streaming service, “Streampix,” instead of offering Netflix to customers. Netflix officials still have not relented.

“It’s not in the short term, but it’s in the natural direction for us in the long term,” said Reed Hastings, CEO of Netflix, speaking at an investor conference last week. “Many [cable service providers] would like to have a competitor to HBO, and they would bid us off of HBO.”

Some students have mixed feelings about the possible deal.

“I think [Netflix is] fine just the way it is,” said Nikki Baynes, U. Arkansas freshman child development major. “I don’t even have cable at my apartment, I just use Netflix on my computer.”

If she wants to use a TV, she can access Netflix through a Playstation or other device.

Derek Jones, UA sophomore mechanical engineering major, agreed that the service is fine the way it is for him, but said offering Netflix through cable could greatly increase the number of users.

“I usually use it on my computer or through the Wii on my TV,” he said. “That’s fine for me, but I can see that it would be really convenient not to have to hook up through a device that gets Internet.”

Some students said the partnership is a good idea, though it may not be useful to everyone.

“I’m sure a lot of people would benefit and it would broaden their customer base,” Baynes said, “but I don’t even watch cable anymore because I have Netflix.”

Cable companies have seen an increasing number of people “cord-cutting,” or cutting their expensive cable services in favor of Netflix’s $7.99 service, according to Reuters.

In a further effort to remain competitive, despite price hikes and fleeing subscribers, Netflix has begun to produce original content. Netflix plans to have five original series available for streaming by 2013, according to Bloomberg.

A cable deal could also help protect Netflix from changing data fees by internet providers.

Read more here: http://www.uatrav.com/2012/netflix-bids-to-become-cable-channel/
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