4. Categories

      Key Topics: Applications, Business Models, IP Telephony, Marketing, Mobility, Unified communications

  5. Quotes

    1. “ Our focus for TV shows is on prior season TV. ”
    2. “ We think more and more evidence that prior season on Netflix helps current season on MVPD (cable, telco or satellite TV) will become apparent from our deals with Disney,Viacom, CBS, NBCU and others. ”

  6. Topics Mentioned


  7. Authors


  1. Is Netflix a "Cord Mender," Not a Cord Cutter"?

    Thoughts on Carrier Evolution (Apr 25 2011)

    1. Netflix argues it is a supplemental channel to cable, telco or satellite TV, not a replacement. Netflix now has more subscribers than Comcast, for example, but seems to be cannibalizing premium TV channels more than anything else, to the extent that users are watching movies. 

      To the extent that Netflix offers TV fare, it has been characterized as "rerun TV" by some. 

      That "is fundamentally correct," says Netflix CEO Reed Hastings. "Our focus for TV shows is on prior season TV," he says.  

      "When we offer prior seasons of 'Glee' or 'MadMen,' we think we grow the audience for current season," Hastings said. "We hope over time that HBO and Showtime will let us prove this proposition for them."

      "We think more and more evidence that prior season on Netflix helps current season on MVPD (cable, telco or satellite TV) will become apparent from our deals with Disney,Viacom, CBS, NBCU and others," said Hastings.

      "Content owners that license to Netflix make more money, now and in the future, than content owners who don’t license to Netflix," Hastings argued. "A few media executives are still vocal about their fears of negative long-term impact on MVPD subscriptions from Netflix, but the evidence continues to pile up against their concerns."

      Hastings has clear business incentives to say those sorts of things, as content owners recently have gotten concerned that Netflix is becoming too powerful in the distribution business. 

      http://www.scribd.com/doc/53876179/Q1-11-Letter-to-Shareholders

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    Recent Comments


    "Gary
    Interesting use of the term "cord cutting." Normally applies to users who are going wireless, rather than wireline (telephony). Not sure that Netflix impacts that cord cutting in any way. Are people industry-wide also referring to cord-cutting as doing away with cable TV and going Internet TV (which still requires a cord, often from the same people who provided TV!)? Or is it just a Reed Hastings-ism?"

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