Report: Netflix in talks with cable companies for partnership

It looks like Netflix wants to be the next HBO after all. Reuters is reporting that Netflix CEO Reed Hastings has been meeting with cable company executives to add the service to their offerings.

Netflix would be added as an on-demand option on cable set-top boxes. Some cable operators would add the Netflix subscription cost to their bills, so consumers would pay for everything at once rather than separately.

Cable companies used to hate the idea of Netflix, because it encouraged people to cut the cord and get rid of their cable or satellite TV subscriptions. A lot of them have changed their mind, however, as Netflix has boosted the ratings of some of their programming. Why? People are more willing to take a shot on something new on the service. If they like it, they’ll keep watching or buy a DVD.

This is a huge step for Netflix. They do great on game consoles like the Xbox 360, Nintendo Wii and PlayStation 3, but more people have cable boxes than game consoles. This is just one more reason for someone to pay $8 a month for Netflix Instant.

There is a chance Netflix one day turns into a complete channel, much like HBO, but that seems unlikely. It would rob Netflix of its biggest asset: choice. Consumers can choose what they’re watching whenever they want, kind of like HBO Go. By the way, HBO should totally offer HBO Go to non-HBO subscribers. [Reuters]

  • Mikie

    This sounds a lot like what my employer, DISH, did with Blockbuster. I actually dropped Netflix because DISH created Blockbuster @Home and they became my one-stop-shop for entertainment. Alongside my DISH subscription I can stream thousands of titles, rent DVDs/Blu-rays by mail and I even have the option to add video game rentals to my queue (something Netflix never got around to doing). I only pay $10 a month for Blockbuster @Home on my DISH bill and the only complaint that I have is that I wish they had started this sooner!