Netflix Reportedly Talking to Cable Companies About a Package Deal

Illustration for article titled Netflix Reportedly Talking to Cable Companies About a Package Deal

Last week, Netflix CEO Reed Hastings spoke vaguely of wanting Netflix to be part of your cable package. Now Reuters cites unnamed sources saying Hastings might actually be negotiating that deal under our noses.


Netflix joining forces with the very cable companies is a weird notion, but ultimately makes sense. Studios, networks, and even the cable companies have proven very hostile towards supplying consumers, and even the streaming video services, with a wide selection of on-demand content. And if they're going to lose directly as a result of a lack of good movies, they might as well make it back through the cable companies as an added-value type of service. [Reuters via Techmeme]



This makes no sense for a customer unless they are cable subscribers and want to stay that way and are also Netflix subscribers and would find combined billing and interface convenient. But if the streaming starts to require a cable subscription or costs more without a cable subscription then it will just drive people to alternatives. Netflix's executive leadership hasn't made a good decision since starting streaming in the first place. So I suspect that this will not be a consumer friendly change.

I imagine they're banking on better negotiating position with studios, being in bed with cable. The content providers AND consumer advocates may end up being on the same side for once!