Netflix Shares Rise On Reports Of Talks With Cable Operators
Netflix Shares Rise: talking to Cable Companies
The 3% jump in early trading stands out on a morning when most stocks are down. Investors are intrigued by weekend reports led by one in The Wall Street Journal that Netflix is talking to cable companies including Comcast about the possibility of making the streaming service available on their set top boxes. The company already has an arrangement like this with Virgin Media in the UK. But the U.S. is a different story.
Brean Capital’s Todd Mitchell says that he doubts Netflix will make much headway with large operators such as Comcast — but might with small ones that “are moving away from managing their own on-demand libraries.” Some are offering subscribers broadband-connected TiVo DVRs in place of a conventional set top box. There’s a school of thought that operators can put up with some video cord cutting if Netflix encouraged more people to subscribe to their highly profitable broadband service.
See the full Deadline.com Story here: Netflix Shares Rise On Reports Of Talks With Cable Operators
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