GigaOm has proclaimed that Netflix streaming and the cable industry are clearly in competition – vying for the same eyeballs and the same dollars. Yet, I’m not seeing it. Sure, there’s some overlap… of on-demand television content and back catalog films. But amongst the vast majority of my peers, and within my household, Netflix provides suplemental entertainment. And most of us choose to carry on with pay television services. We may bitch and moan about price hikes, billing problems, or customer service letdowns. But premium television remains quite compelling. Without live news, sports, or current, first run movies Netflix will remain largely a supplemental service. Netflix knows this. In fact, the GigaOm crew cites CEO Reed Hastings regarding the cord cutting mythos, “It’s not happening, it’s not anything we are causing, cable and Netflix are complementary.”
As evidence, GigaOm suggests that cable companies RCN and Suddenlink neutered their TiVo deployments by removing the Netflix app: “The logic? Netflix could get people to ditch their premium channels and ignore cable VOD.” However, RCN is very clearly on the record in its desire to offer Netflix streaming and Suddenlink is would “gladly” consider it. This is purely a licensing issue involving Netflix, TiVo, distributors, and studios. Rather than threatened MSOs blocking the (perceived) competition. Amazon Video on Demand, of course, is another story entirely.
As for me, I’m streaming very little Netflix these days. I’ve either already seen the content or just don’t find it compelling. In fact, between Amazon Prime, Hulu Plus, and HBOGo, I’m considering dropping Netflix altogether. Unless, I upgrade to more (Blu-ray) discs per month – reverting back to physical media to catch newer releases at bargain prices.