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Netflix in talks to be on cable tv set top boxes..

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techs

Lifer
http://www.nytimes.com/2013/10/15/business/media/netflix-as-easy-as-changing-the-channel.html

Netflix, as Easy as Changing the Channel

Now, in a sign of on-demand TV’s popularity, some cable companies, including Comcast, Charter Communications and Cox Communications, are talking with Netflix about doing away with the two-step and making the subscription service — and other online video services — available through the set-top boxes that most Americans have in their living rooms.

For the providers, the discussions are part of a broader shift toward Internet-powered delivery of television. But they also exemplify how the Comcasts of the world are gradually accepting, if not altogether embracing, Netflix, even as the cable pioneer John Malone continues to recommend that the cable industry create a Netflix rival.

Netflix, for its part, has wanted to be on set-top boxes for almost as long as it has had a streaming video service.

“Having the Netflix app on a set-top box is a natural progression,” Jonathan Friedland, Netflix’s chief communications officer, said in an e-mail on Monday. “Our goal is to make it as simple as possible for consumers to enjoy Netflix while cable operators see value, too, because it makes their broadband service more attractive.”

Some cable giants (like Time Warner Cable) see themselves primarily as broadband, not television, providers. Cablevision already promotes itself as having “the highest-quality Netflix experience,” and in the future it and others could bundle Netflix with faster, higher-priced broadband service.




I don't get it. Having Netflix on a cable box is just like adding another cable channel that is also On Demand, as Comcast calls its version of it.
If the economics of set top Netflix worked then why hasn't someone just started a channel with lots of old movies and tv shows?

For the cable company 11 bucks a month for a premium channel is about the norm. Half to the cable company and half to the channel. Netflix charges about 8 dollars a month, so they would lose money at the going cable rate. All I can figure is Netflix has become more desirable because they have a lot of content and they have a nicer interface whether on a computer or a box like Roku. If they do this Netflix becomes just another channel like HBO.
 
It gets Netflix more customers and incentivises the cable co to join open connect which will save Netflix money. What i don't get is what is in it for the cable co. I guess they can charge more for internet service?
 
It gets Netflix more customers and incentivises the cable co to join open connect which will save Netflix money. What i don't get is what is in it for the cable co. I guess they can charge more for internet service?

If Netflix is an add-on for cable, two positive things happen for the cable company:
1) They get a cut of Netflix money
2) Their remaining customers get into the mindset of "I have cable with HBO, Netflix, etc" and they don't think about Netflix as an alternative to cable, which means they'll be less likely to think about cutting the cord.
 
I just hope that it does spell the end of Netflix as a stand alone entity. I've spent far more time watching shows/movies on Netflix than I spend watching regular television. (Maybe 5 hours of Netflix a week, to an average of 1 hour of television per week.)
 
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