Tomahawk, WI 10/15/2013 (BasicsMedia) – Netflix, Inc. (NASDAQ:NFLX) has fought numerous wars with cable TV and entertainment providers over the years. The firm has won some of these battles and lost a number in equally measure. NFLX is unique in that it provides streams television shows and movies online to millions of Americans. It has seen its subscription base multiply in the recent years to a point where cable TV providers now think NFLX has developed into a rival business. This is the reason why I support any talks between the two since they cannot do without the other.

 NFLX Shows Its Respect to Cable TV Providers

 What I like about NFLX is the fact that it rarely goes ahead with a new product without involving the cable TV and entertainment providers. NFLX has planned to develop a new app that will make it possible for subscribers to view its online content on cable TV providers’ set boxes. The talks are still at their infancy and thus the deal is still inconclusive. The company entered into a deal with Virgin Media of England as recently as last month. This deal will allow NFLX’s streaming service to connect to Virgin’s through the latter’s TiVo set top boxes.

 NFLX Needs More Deals with Cable TV Providers

 These types of deals are exactly what NFLX has been looking for over a period of many years. NFLX has always strived to strike deals with the U.S. Cable providers. If it can arrive into agreements with other cable TV providers the way it did with U.K’s Virgin Media, this will be good for business. The constant squabbles with Cable TV providers are not good for NFLX. The company needs these providers both in the short and long term. Its profitability depends on the packages it develops in conjunction with cable TV providers in the U.S. and elsewhere.

NFLX’s top management has said that they are working on new deals with other cable TV operators whom they have not dealt with in the past. Previous deals have helped NFLX see its subscription base grow to around 29 million in the U.S. alone. There is still a lot of potential for the company in other markets around the globe if it arrives at good deals after these talks with other cable TV providers. The new deals will see a growth in NFLX’s customers in addition to providing its clients with the option of accessing and watching its contents on various platforms.

 Why Cable TV Providers Still Distrust NFLX

NFLX faces a Herculean task in trying to convince cable TV providers that it is a friend rather than a competitor. The talks are not universally attractive to cable TV providers, and some are showing a bit of hesitancy. NFLX is still quiet on whether it will come up with its own pay TV service. If it takes such a drastic step, many cable TV providers believe it will have a huge impact on their businesses. There is real fear on the part of these cable TV providers that they will lose their customers to NFLX if they discover that the latter streams its own content online.

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