Netflix (NFLX) Doesn't Want to Be Netflix Anymore
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Wait, what? According to reports out late Tuesday, Netflix (Nasdaq: NFLX) might eschew the whole "trying to negotiate with cable TV" idea and instead might be part of a bundled TV package in the future.
Speaking at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, CA, CEO Reed Hastings said a "moment of truth" hits when a user picks the remote up and has to decide between watching cable TV or on-demand programming from Netflix.
Looking at it from a longer-term perspective, Hastings sees the evolution of Netflix headed in that direction.
Channels like HBO don't have it too bad; about 40 percent of the content is original with 60 percent coming from outside sources. But with HBO, Starz, and others launching competing platforms to Netflix, it only makes sense for Netflix to start producing more of its own original content. The latest of these offerings is "Lillyhammer," which stars Steven van Zandt as an ex-mobster in a witness protection program in Norway. No metrics about how the show is doing have been released yet.
Ahead of the bell, Netflix shares are indicated for a lower open Wednesday.
Wait, what? According to reports out late Tuesday, Netflix (Nasdaq: NFLX) might eschew the whole "trying to negotiate with cable TV" idea and instead might be part of a bundled TV package in the future.
Speaking at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, CA, CEO Reed Hastings said a "moment of truth" hits when a user picks the remote up and has to decide between watching cable TV or on-demand programming from Netflix.
Looking at it from a longer-term perspective, Hastings sees the evolution of Netflix headed in that direction.
Channels like HBO don't have it too bad; about 40 percent of the content is original with 60 percent coming from outside sources. But with HBO, Starz, and others launching competing platforms to Netflix, it only makes sense for Netflix to start producing more of its own original content. The latest of these offerings is "Lillyhammer," which stars Steven van Zandt as an ex-mobster in a witness protection program in Norway. No metrics about how the show is doing have been released yet.
Ahead of the bell, Netflix shares are indicated for a lower open Wednesday.
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