Tuesday, October 15, 2013

Netflix Shares Up 8 Percent After Reports of Talks With Cable Companies


Shares of Netflix surged 8 percent Monday after reports surfaced that cable operators were considering embedding the video-streamer's service into set-top boxes.



The Wall Street Journal, citing people familiar with discussions, said Netflix is talking to Comcast and Suddenlink Communications, and Bloomberg later reported talks are underway with Charter Communications and Cox Communications, as well. 


Netflix stock Tuesday rose $23.51 a share to $324.36 on volume that was more than twice the average.


RELATED: Netflix in Talks to Offer Online Video Service via Comcast, Other US Pay TV Firms


Presumably, if a deal were to get done in the U.S. it would be similar to an arrangement Neflix recently struck with Virgin Media in the U.K. and Com Hem in Sweden. With those two -- at least initially -- only their subscribers who use TiVo set-top boxes will be able to access a Netflix app.


Netflix's goal, though, is more likely that the app be available on cable boxes in general, therefore making the on-demand streamer more of a partner to multi-systems operators and less a competitor.


"We would love to reduce the friction to the end consumer and to be available via the existing device in the home," Netflix CFO David Wells said this year at an investor conference.


Source: http://feedproxy.google.com/~r/thr/business/~3/o0vGhBe5M7o/story01.htm
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