Boston, MA 10/15/2013 (wallstreetpr) – On Monday, October 14, 2013 this company saw a 23.51% rise in its stock price. The reason for this sudden climb may be the fact that Netflix is in discussion with various service providers like Comcast and Suddenlink Communications in order to provide online streaming of their content on the cable TV though either new apps or set top boxes, as reported by The Wall Street Journal. These discussions are still in their fledgling state and an official announcement is yet to be made.
Chief Financial Officer, Netflix, Inc. (NASDAQ:NFLX), David Wells stated in an interview to Reuters that the company has been trying to woo such service providers for over two years now but no proper deal has been struck. Just last week, the deal making kicked off with Virgin Media of U.K liaising with Netflix to streamline online content. Now the company is looking to do the same with the U.S. cable providers. Wells is sure that such a deal is a win-win for both parties since these service providers face stiff competition from Netflix otherwise.
Point of view of cable service providers
Most of them are skeptical about letting in Netflix into their set top boxes as they feel that it will increase complexities in their service providing jobs due to additional apps and advanced technologies. Also they view Netflix as a threat because if the company opens a new pay and watch TV subscription then it will be grabbing up most of their clientele due to the availability of all shows on Netflix.
Once the providers agree to liaise with Netflix then the company hopes to enhance the providers’ technology to Open Connect program technologies that enables direct connection to their networks. Also the company has plans to come up with its own servers that can be plugged in to be connected to the providers’ ISPs.
