The age we are in is proving difficult for cable companies. When services like Netflix first came out in 1997, cable companies and rental services snickered. But they wouldn't be laughing for long. Blockbuster is a prime example since Netflix is largely to blame (or credited) with their demise.
Since around 2009, Netflix has exploded, stealing many cable company's loyal customers. Currently, the service offers a one-time monthly fee (~$8) for access to their extensive library of TV shows and movies. People looking for inexpensive entertainment have loved this because it is economical, gives them plenty to watch, and allows streaming on up to 3 devices at once. Translation: you can split the $8/month between you and your roommates, friends, or family instead of paying $100+/month for cable.
But what is the future of Netflix and cable companies? According to this article released by John McDuling, Netflix put its own version of a "Netflix box" (like a cable box that allows you to stream Netflix on your TV) on hold due to talks of joining in with cable companies to become a default on the cable boxes. This is huge.
Although this could increase Netflix's customer base, it could further cannibalize cable sales. Netflix could easily steal these consumers once they realize the benefits of simple paying for Netflix and not cable. Additionally, I am interested to see what happens as more people are figuring out how to get around having a "box" and using things such as Apple TV or HDIM cords to stream online TV shows and movies.
Should Netflix partner with cable companies? What do you think the future will hold for both cable AND Netflix?
I guess only time will tell, but I will be interested to see how this battle plays out.
As always, thanks for reading!
-LC
This is an extremely interesting fact that I didn't know was a possibility. I think that it would greatly benefit the cable companies, because people might be more willing to pay for cable if it would include the Netflix cable service. But I also think that it would be more beneficial for Netflix to release their own box, because 1) they could earn A LOT of money off of this, and 2) cable companies might be difficult to work with and might force Netflix to offer things it might not normally, or something along those lines. Either way, I think it is inevitable that Netflix will be coming to TV, and I am interested to see how!
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