Scary Times for Cord Cutters: Netflix talking to Cable

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Our old buddy Reed Hastings may be getting ready to send out one of those surprise emails to the subscriber base again. Remember the last time about Qwikster  and the rate increase? Well this is even worse.

Netflix is so successful that cable operators are copying it. And that’s a real challenge for Netflix because they don’t own content they lease it. Sometimes great ideas just don’t last forever. Remember AOL?

Hastings realizes that and may be looking for an exit strategy. And that may be why he’s talking to cable operators about possible partnerships.

Problem for us is Netflix is a key part of that basic formula I’ve oft repeated:

NETFLIX ($8/mo) + antenna (free) = Cord Cutter

Take that away and what do we have? I’d guess I’d be taking another serious look at Hulu.  Meanwhile watch your email inbox and brace yourself.


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4 Responses to Scary Times for Cord Cutters: Netflix talking to Cable

  1. James High says:

    You are right. Losing the value proposition of NetFlix is pretty darned scary. I’m trying to make it now on Google TV + OTA antenna + Netflix, and I don’t want to go back to paying for channels I don’t want to watch. We need more competition in this industry to drive prices down to a level where consumers can continue to receive real value.

    • admin says:

      Thanks for your reply. Problem is Netflix isn’t loyal. I get the feeling Reed will sell out to an entirely new business model if it seems right at the moment.

  2. F Power says:

    I think Netflix should make a deal with the content providers . If we got the same content here in Canada as USA 9.99 would be in my price range. If they go and join cable then someone else will put them out of business . Millions of cord cutters will go to their computers and find online content and drop Netflix . It will finish them off for sure , and the cable companies will love getting rid of the competition. FTA and online content is here to stay so hook up your computer to your tv and get an antenna . If Netflix makes a deal with the devil then its their loss ,cord cutters are their biggest customers !!!!!!!

    • admin says:

      I agree but I think making that deal is the hard part for Netflix. Netflix is stressing about what is going to be its next incarnation. You can read that between the lines of Reed Hasting’s famous emails. I hope they survive. I worry they’ll be the next AOL.

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