While investor calls generally bore us, Netflix dropped quite the bombshell this afternoon:
This quarter we will launch the first MVPD integrations in the U.S. As we did in Europe, we will start with U.S. MVPDs that use the TiVo set-top box and try to extend to non-TiVo devices after that. From an MVPD point-of-view, they would rather have consumers use Netflix through the MVPD box and remote control than have consumers become accustomed to watching video from a smart TV or Internet TV device remote control.
So many possible angles to explore here… RCN is arguably TiVo’s most aggressive US partner, one that previously expressed interest in offering Netflix, and Suddenlink recently polled subscribers regarding the possibility of a Netflix addition. Then we’ve got the whole peering dealio with cable/broadband providers like Comcast to ponder. And, of course, finally is the elephant-in-the-room premise that Netflix had been a cable competitor (although many of us here subscribe to both). Yowza!
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I absolutely believe the initial rollout will see zero changes to Netflix subscriptions... but I wonder if down the road they'd bundle it or even offer cable operators commissions for enrolling folks and/or integrated billing - like an inverse EPIX. The permutations make my head ache. In a good way. :)
Speaking of Netflix subscriptions, new customers will be subject to $1-2 higher rates come summer... guess I better re-up as soon as Orange in the new Black S2 hits in June.
Lastly, in regards to Netflix on Amazon Fire TV: "we expect to support voice search later this year"
As you say, will be interesting to see who jumps, but I'm not convinced this means much *yet*. I presume Comcast et al will fight this far more than Mom & Pop cable.
If Alan Wolk is right, then only about 10% of the 120M US Households get their TV OTA, meaning at most 12M subscribers for Netflix there even if all of them subscribed which obviously isn't right. So the majority of Netflix ~35M suscribers in the US must be coming from people who also pay for TV (cable, telco, satellite).
Given my own experience with the WAF of ANY device on an alternate input, I can easily imagine that there are a *lot* of people who might subscribe to Netflix if it were easy to get access to it from their cable STB. So I assume this is a win for Netflix? Like others I'd probably prefer to just let the old system slowly strangle itself but hey, maybe they're smarter than we give them credit for.
"Speaking of Netflix subscriptions, new customers will be subject to $1-2 higher rates come summer"
The Comcast "first-mile" tax...