Tomahawk, WI 10/11/2013 (BasicsMedia) – Netflix, Inc. (NASDAQ:NFLX) does relatively well when it comes to Internet entertainment but the same cannot be said of it when talking about Cable TV. The latter has held a very skeptical view where NFLX is concerned. NFLX seems to have failed to win the confidence and trust of Cable TV providers, who consider it their enemy number one. It is interesting that the two cannot work together when everything else appears to be pointing at a potentially beneficial relationship between the two in an industry which has incredible opportunities for growth. Can this change?

NFLX Can Attract More Local Subscribers

NFLX can see its local subscriber base grow to more than 40 million in the U.S. alone. But this won’t change the perspective of many who see it as nothing more than a complementary to Cable TV.  This is not good for NFLX and it must curve a different niche for itself so that it is seen as the better alternative to cable TV. This is well demonstrated in the fact that you would struggle to come across a single household which watches NFLX for more than two to three hours every day. If this were to happen, NFLX will cease being a complementary service to Cable TV.

NFLX can Emerge As a Competition to Cable TV

NFLX can emerge as a credible competition to cable TV. Perhaps the company has not started seeing itself in this manner, when the providers of Cable TV already see it as such. I think that providers of Cable TV already see NFLX as a serious competitor and this is the reason why they don’t relate well with it. What remains for this relationship to be mutual, is for NFLX to grow better than it has managed thus far. The only challenge with this is that NFLX currently depends on Cable TV for its programming. If it grows beyond Cable TV, where will it get its content?

If NFLX were to grow to a stage where its services are viewed by between 30 and 40 million subscribers, this will be good for its business. Its sales and revenue are likely to increase thus leading to better profits. This could also help NFLX to increase its prices slightly without creating a dent on the number of people viewing its programs. The other alternative for NFLX if it intends to grow, is for the company to emerge as a serious substitute to cable TV. But like I said earlier, this is not possible under current circumstances since it gets content from cable TV.

NFLX is Between a rock and a Hard Place

NFLX is in a tight spot. While it needs to prove that it is not a complementary service provider to what Cable TV offers, it still has to find a way of growing better than the Cable TV. It is a company which depends on Cable TV yet has to find ways of doing better than Cable TV. One of the strategies it could take is to work hard so that it is viewed as a cable channel, and not a cable company the way Cable TV operators already view it. The many lawsuits which these cable TV operators have filed against NFXL prove that they view it as a major rival.

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